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"It is helpfulâ€¦.to think of culture as analogous to music:(a)If another person hasn't heard a particular piece of music, it is impossible to describe.(b)Before the days of written scores, people had to learn informally by imitation.(c)People were able to exploit the potential of music only when they started writing music scores." (Hall,1973). Culture is a collective phenomenon that is about shared values and meanings.
For a successful company a strong connection between organizational structure and culture is very important. Organizing is the process of arranging people and other resources to work together to accomplish a goal. Organization structure is a system of tasks, reporting relationships, and communication linkages. Culture is a collective phenomenon that is about shared values and meanings.
Strategic mergers are becoming critical components for today's global business strategy. The common causes for the failure in mergers are structural and cultural differences. Before merger the firms need extensive preparation, a relationship of trust between negotiators and long period of post-merger consolidation.
1.1. Research questions
What are the organizational designs and key dimensions of culture?
What are the factors that influence organizational structure and culture?
What are the impacts of organizational structure and culture on merger
1.2. Research objectives
To describe the organizational designs and key dimensions of culture.
To identify the factors that influence organizational structure and culture.
To describe the impacts of organizational structure and culture on merger
2. Research methodology
2.1. Data collection and data analysis.
2.2. Case study method.
3. Literature review and application
4. Organizational structure:
'The structure of an organization is the sum total of the ways in which it divides it's labour into distinct tasks and then achieves co-ordination among them' (Mintzberg, 1979)
Managers design the organizational structure to influence employees to achieve wider goals.
4.1. The organizational designs:
Organizational design is the process of creating structure that accomplishes mission and objectives. The organizational design consists of 1.Organizational variables, 2.Control variables, and 3.Cultural variables.
The following organizational variables are designed to achieve organizational effectiveness.
1. Decision rights: Indicating who is having the responsibility to approve, implement, and control various types of decisions. It designs the proper allocation of decision rights.
2. Business processes: The set of ordered tasks needed to complete key objectives of the business and includes 1) A beginning and an end,2)Inputs and outputs,3)A set of sub processes that transform the inputs into out puts,4)A set of metrics for measuring effectiveness.
3. Formal reporting relationships: The formal reporting relationship reflects the flow of communication and coordination among the units throughout the organization.
4. Informal networks: Sharing and transferring knowledge outside the formal reporting relationships for effective function of the organization.
These are the tools which will help the organization to monitor and evaluate the performance of the organization.
1. Data: Collection of information, evaluation, and providing feedback.
2. Planning: The processes through which the strategic objectives are achieved.
3. Performance measurement and evaluation: The set of measures used to get feedback about execution of plans and the processes. This feed back is used to improve the quality of work.
4. Incentives: used to motivate behavior within an organization.
Set of values and beliefs about what is desirable and undesirable in a community of people.
1. Values: The set of unspoken and clear beliefs that underlines decisions made and actions taken, reflects aspirations about the way things should be done.
4.2. Identifying structural characteristics:
Every firm should have a strategic plan which specify the future direction of the business, the responsibilities of the managers should be organized to achieve the strategic plan, for this firms have their organizational structure that identifies responsibilities for each job position and relationships among those positions, the organizational structure also indicates how all the job responsibilities fit together, the organizational structure affects the effectiveness and efficiency with which the firm produces its product and therefore have an impact on the firm's value, all business must make decision when choosing a structure that fits it's business goals, so therefore needs to understand different types of organizational structure, compare them with each other and try to reduce the disadvantages or negative impacts that the chosen structure might have on the business goal.
Different firms use different organizational structures which are influenced by specific characteristics of its business and can affect the firm's performance; organizational structures vary among firms according to:
Period of control
Use of line versus staff positions
4.2.1.Period of control: this is determined by the top management or the number of employee managed by each manager, when organizational structure is designed so that each manager supervises few employee, it has narrow span of control and when it is designed such that each manager supervises numerous employees, it has a wide span of control.
4.2.2.Organizational complexity: organizational structure can also be defined by its height, a tall organizational structure implies that there are many layers from the bottom of the structure to the top, a short organizational structure means there is no much distance from the bottom of the structure to the top because there are not many layers of employees between the bottom and the top.
4.2.3.Line versus staff position: the job position in an organizational structure is classified as the line or staff position, they are established to make decision that achieve specific goals, the staff position supports the effort of the line positions, the staff positions provide assistance to the line positions and authority to make decision is assigned to the line position.
Various types of organizational structure are affected by all the features listed above; the nature of structure that best suits an organization has to do with the objective and strategy the organization. Although many companies still use the centralized, hierarchal structure that has got many rules and regulations, if the firm's strategy fits a centralized kind of structure, there is no need for a change. However, some organizations have a decentralized structure to suit their strategy.
It is important to determine the organizational structure that best fit a particular company. A wrong structure can result into poor communication, poor customer service, poor product development, and some other business problems. Any of these issues can be detrimental to an organization and could result in revenue lost or total failure of the organization. The three main types of organizational structures are functional, divisional, matrix structure and network structure
4.3. Types of organizational structure:
When working knowledge divides the task of the enterprise into smaller jobs for individuals and groups together in functional, divisional ,matrix or networking forms.
4.3.1. Functional organizational structure:
A functional structure is defined as a design that groups similar or related occupational specialties together, functional structure is perhaps the most logical and basic form of departmentalization used mainly by smaller firms because it make efficient use of specialized resources and it also makes supervision easier since each manager would be an expert in only a narrow range of skills, Functional structure have some disadvantages which might surface as the organization grows such that functional managers might find it difficult to report to the head and getting immediate response might be an issue, it will also be difficult to control quality as each department may feel isolated from others which will lead to difficulty working with together in unified way to achieve the organization's goals.
4.3.2.Divisional organizational structure:
Divisional organizational structure divides the organization according to the type of work, region, and product and so on, employees are divided based on the product/customer segment/geographical location, it allows for flexibility and quick response to environmental changes. It also enhances innovation but results in duplication of resources because, for example we need to have equipment, for each division. Obviously, it does not support the exchange of knowledge between people working in the same profession because part of them is working in one division and the others are working in other divisions
4.3.3.Matrix organizational structure:
Employees are grouped by both function and products in matrix structure. This structure can combine the best of different structure.
When matrix structure is used individuals report to more than one superior at the same time, it occurs when product departmentalization is superimposed on a functionally departmentalized organization. In a matrix organization, authority flows both down and across. Matrix have some advantages such as added flexibility and it can also increase productivity, raise morale and nurture creativity and innovation, employees also experience personal development through doing variety of jobs, Matrix structure also have some disadvantages, having employees report to more than one supervisor can cause confusion such as who has responsibility, personality clashes, poor communication, undefined individual roles and unclear responsibilities.
4.3.4. Network organizational Structure
Network structure is a modern structure which includes the linking of numerous, separate organization structure to optimize their interaction in order to accomplish a common, overall goal, because it consists of multiple organizations that works together to produce goods and services, a network organizational structure is seen as a more complicated and complex structure than any other structure.
In a network structure, administration is the primary function performed and other functions such as engineering, marketing and finance could be contracted out to other organization, a network organization does not manufacture the products it sell most time, network structure is associated with limited formal structure.
An advantage of network structure is the flexibility that allows the organization to adjust quickly to changes and some of the challenges faced by managers in network structured organization include controlling the work done by other organizations and the vulnerability associated with relying on outside contractors.
4.4. Comparison of organizational Structures:
Functional organization structure :Except the formal administrative units, company also establish a corresponding of functional organizations.
Advantage/ Disvantage of Functional organization structure
Advantage: It adapt to more complex production technology. Fully exert the function of organization. Moreover, it also reduce the burden of managers.
Disadvantage: It prevents the centralized leadership and unified command. This usually cause irresponsibly among the departments. In addition, the contradiction would happen frequently between higher administrative and the guidance.
Divisional Organization structure:
It is the vast majority of enterprises have adopted the structure.the structure divide organization and personnel into two categories. One is leading institution; the other is personnel institution.
Advantage/ Disvantage of U-form Organization
Advantage: not only ensure the centralized business management system, but also the person are in charge at all level of administration.
Disadvantage: functional cooperation and coordination between department is poor. To overcome these shortcomings, the commission may establish a variety of integrated, or create a variety of meeting system to coordinate all aspect of work.
Matrix organizational structure:
Matrix system is a series of functions and tasks for the completion of the formation of a temporary project team. It most important feature is a dual channel command system. Matrix system of organization is perpendicular to the line functions of the system which is based on U-form Organization, and add a horizontal leadership system. It is not a long-term organization.
Advantage/ Disvantage of Matrix system
Advantage: strengthening horizontal linkages, professional equipment and personnel have been fully utilized. Because of the greater mobility, people are easier to help each other and inspire each other.
Disadvantage: the members are not fixed. They have provisional ideas, sometimes not strong enough to take a responsibility. In addition, under the dual leadership, it is difficult to clearly define the responsibilities.
Network organizational structure:
4.5. Importance of organizational structure in merger process:
Effective organizational structure makes responsibility delegation easier and makes it easy to see the organizational change throughout the organizations. It is important to realize the advantage of organizational structure to benefit from a strong framework.
Organizational Chart: is a tool that represents employees work responsibilities and reporting relationships. With its reporting structure it shows the structure and hierarchy of employees of their division of work and level of responsibilities in the organization.
Distribution of Authority: Organizational structure shows the authority and responsibility distribution throughout an organization. Employees will get awareness of their superiors and subordinates.
Communication: Organizational structure makes communication easy between employees in their duties and this enhances information sharing and problem solving.
Chain of command: the structure helps employee to know who is engaged in the decision making process.
Proper Balancing: Structure helps specific task and activities to be assigned in functional departments which provide a good coordination between departments.
4.6. Impact of organizational structure on merge:
In the case of merger, two organizations are required to integrate their organizational structure appropriately. Inappropriate organizational structure can cause failure in integration between firms and reduce benefit of merger. Unclear reporting structure has a great tendency to cause merger failure.
Reconstructing organizational structure may take some time after a merger and it may cause uncertainty and anxiety amongst employees. Therefore it is important to declare the new organizational structure with clear roles and reporting relationship of employees (SS Brahma).
Good organizational structure facilitates communication between individuals or groups within the two organizations. Incompatible structure becomes obstacle for successful communication and achieving the corporation goal become impossible.
4.7. Factors that influence organizational structure:
The organizational structure can be influenced by different factors, such as the size of an organization, the environment, technology, efficiency of organizational design, etc.
The structure of an organization should be developed in such a way that endorses the strategy and plan of management. It is very significant for managers to be aware of the factors which may have an influence on the structure of an organization.
Organizational Design aligns structure with situational Contingency
Figure: A framework for organizational design- aligning structure with situational contingences
Stable Environment- Composed of certain and predictable environment. Desires of customers are well known and may remain constant. Few changes take place in such kind of environment and organizations can perform well without frequent change. Bureaucratic organization and mechanistic design fits in such environment.
Dynamic Environment- composed of uncertain environment with less predictable elements. The desires of customer are frequently changing. Organizations must be flexible. For such environment, adaptive organizations and organic design is adequate.
Organizational structure should be designed in such a way to fit its strategies. Different strategies need different structure. Organizations may need to change their strategies or mission for better performance and this leads to a change in organizational structure.
Stability oriented strategy - only few changes occur in the external environment, Bureaucratic organizations and mechanistic design is adequate for such certain strategy.
Growth oriented Strategy - Strategies is likely to change frequently. Circumstances are complex and uncertain. The operation objectives focus on flexibility of frequent change and innovation. Plans changes regularly and there is a need for improvement.
Technology is the way task is done using knowledge, skill, equipment, techniques and human know-how. Advance in technology cause frequent change in an organization. A suitable technology results in high productivity and lower cost for the firm.
Technology is a major influence on organizational structure. The right combination of structure and technology are critical to organizational success (Joan Woodward 1960s).
As the size of an organization become larger and older, the structure becomes more complicated. It is very difficult to manage large organizations without a formal organizational structure, whereas in very small organizations structure can be very simple. Employees can carry out their task based on their needs, skill and/or interest. Tasks can be performed without having a formal work assignment and delegation of authority.
In large organizations, the structure is more liked mechanistic. Tasks are highly specialized and more level of management. Work procedure is dictated by rules and strategies. Communication flow is from superior to subordinate.
Organization life cycle
Organizations undergo in four different stages (birth, Youth, midlife and maturity) to progress.
Birth: the beginning stage of an organization. Firms do not have a formal structure.
Youth: Organisation is tempting to grow and high focus on customer. Formal structure is designed in this stage with formal work assignment and delegation of authorities.
Midlife: In this stage organization accomplish success and developed a complex and formal structure with chain of command. Control becomes very difficult.
Maturity: organizational focus is on maintaining the stability of its secured environment. Organisations become less innovative, less focus in expansion. Focus is on efficiency and profitability.
An organization may change its position in the life cycle by changing its structure.
If an organizations become larger and older, the structure changes. It becomes more complex and its need for more structured and it's specialized of tasks increases.
There must be good fit between organisational structure and human resources. Organisational design should allow skilled employees to use their talent and knowledge to the full.
5. Organizational culture:
"Organizational culture consists of the behavior, actions, and values that people in an enterprise are expected to follow."(Pettigrew, 1979)
"Organizational culture is a set of values, often taken for granted, that help people in an organization understand which actions are considered acceptable and which are considered unacceptable."(Moorhead & Griffin, 1992)
5.1. Key dimensions of an organizational Culture:
Measuring key dimensions of an organizational culture provides a composite picture of the organization's culture. This will become the base for the feelings of shared understanding of the members about the organization, how things are done, and the way the members are supposed to behave. The following are the 10 key dimensions of an organizational culture.
1. Member identity:
2. Team emphasis:
3. Management focus:
4. Unit integration:
6. Risk tolerance:
7. Reward criteria:
8. Conflict tolerance:
9. Means versus end orientation:
10. Open-system focus:
5.2. Identifying cultural characteristics:
"Denison Organizational Culture Model", indicates the external adaptation, internal integration, flexibility, stability as cultural characteristics of the enterprise which influences the prospective of organization. These four ideal characteristics would be reflected by four features (1) involvement, (2) consistency, (3) adaptability and (4) mission.
Involvement : referred to the capacity of workers, ownership and responsibility. In the culture characteristic reflects the company's training for staff , the communication between workers, the participation of staff and the responsibility of workers.
Three dimension of "Involvement"
Authority: whether workers are very active and fully authorized or not. Are they willing to take a responsibility? And whether they have ownership or motivation.
Team-oriented: whether employees relying on the team to complete their work. Is the company encourage employees to cooperate to achieve common goals?
Development: whether the company continue to invest resources in training staff to enable them to be competitive, to cope with the needs of business development.
Consistency : to measure whether the company has strong and cohesive internal culture
Three dimension of "Consistency"
Core value: whether company has a set of fundamental value, so that employees have immense identity and have clear expectation of future.
Negotiate: does the leader have sufficient capacity of negotiation so that the team can reach relative agreement, and reconcile different opinions in the key issue.
Coordinate and integrate: are functional departments and units able to closely collaborate. whether the circumscription between department and unit will become an obstacles to collaborate.
Adaptability : mainly refer to capability of adapting the changing from external environment or whether they have ability to aware the sign of market and response quickly.
Three dimension of "Adaptability"
Creation and revolution: whether the company evades to be reliable for the risk of change. Does the company learn to assess the external environment and timely make proper processes as well as implement.
Customers first: In the competitive circumstance, it is benefit for a company to conduct their strategies from customer point of view. Does the company understand their customers and make them satisfied further to provide them an expectation to the company future?
Organizational learning: is the company able to transform the external change to a great opportunity for absorbing new knowledge and encouragement of innovation.
Mission : is used to determine the company is focusing on immediate interest or has long-term strategy and accurate tactics to approach even bigger goal.
Three dimension of "Mission"
Company vision: whether the employees have a consensus of company's future. Is this vision identified with by all employees?
Strategy oriented: does the company want to be outstanding in this industry? Does the company clearly demonstrate their incentive to the objective and make everyone knows how to make their own contribution in the ongoing strategy?
Goal: company needs to formulate a series of comprehensive mission and strategic objective which are related to the employees' work can be regarded as reference for staff.
In these four characteristics ,each has three dimensions. In these 12 dimensions are relevant to market share, sales growth, innovation of product and service, return on equity, return of investment etc.
5.3. The stages of cultural formation: There are six core questions need to be considered before build the organizational culture fist of all. (1) how to treat customers (2) how to treat employees (3) how to think and define competition (4) how to consider the social and environmental responsibility (5) how to consider cooperation and competition (6) how to understand cost and profit.
Secondly, we discuss further the practical formation stages.
Development of the core of organizational culture systems
Construction of the surface of organizational culture
Implementation and penetration of the core concept of organizational culture
Development of the core of organizational culture systems
Corporate values and entrepreneurial spirit are the core of organizational culture. First the establishment of corporate value system should be combined with the enterprise's own nature, scale, technical characteristics, personnel and other factors. Second, the good values should be considered with the company perspective of overall interest , and integration of employees. Third, the values of an enterprise should consolidate the ideals and creed of all employees,which reflect the direction and goals of company development, one that can regard as a spirit to encourage staff to work. Forth, the company value should be included in a string sense of responsibility, so that the public have a good impression to the company.
Construction of the surface of organizational culture
Mainly refers to the organizational culture and system of the physical level. Construction of organizational culture is including the surface of the hardware business aspects and environment factors. It is involved appropriate rules and regulations, codes of conduct, design banners, badges, songs,and certain hardware facilities. To provide material security for spirit level of organizational culture.
Implementation and penetration of the core concept of organizational culture
Rules and regulations: the most important rules and regulations should be including the main principle of a enterprise which allow employees to cope with the company's requirement during they work . Such as staff code of conduct, public relations, norms , crisis management, and co-worker relationship.
Work and decision-making: by these should indicate daily work and decision-making. The leader should be a model to employee and guide the staff by examples.
Ceremony: the various ceremonies and rituals can promote company to be vivid. Such as conferences, exhibitions, celebrations and festivals.
Example of role and hero: in order to implement and carry out corporate philosophy, it is necessary to set an example to let the s, staff learn from he/she to make them feel real impact.
Education and training: in order to allow employees participate in organizational culture efficiently, enterprise needs to establish a way to broadcast their shared value and information. Such as internal network, newspaper ,forums, and utilize these means to educate and train for their staff.
5.4. Types of culture:
Charles Handy(1993) ,generalized 4 culture types.
Power culture: is one in which people's activities are strongly influenced by dominant central figure.
Role culture: is one in which people's activities are strongly influenced by clear and detailed job descriptions and other formal signals as to what is expected of them.
Task culture: is one in which the focus of activity is toward completing a task or project using whatever means are appropriate.
Person culture: is one in which activity is strongly influenced by the wishes of the individuals who are part of the organization.
5.5. Multiple cultures:
A key concern in the culture of any organization is diversity. The term multiculturalism refers to pluralism and respect for diversity in the workplace. They value the talents, ideas, and creative potential of all members. Good characteristics of multicultural organizations are,
1) Pluralism: Members of both alternative cultures and majority cultures are important in setting key values and policies.
2)Structural integration: Members from multiple cultures are given equal opportunity in all levels and in all functional responsibilities.
3)Absence of prejudice and discrimination: A proper guidance and task force actions deal with the need to eliminate culture-group conflicts.
5.6. Culture and performance:
We can review the effect of organizational culture on employee behaviour and performance with some key ideas. First the culture of an organization allows employee to understand both the history of the firm and present methods of operation. This knowledge provides guidance about expected future behaviours. Secondly, Organizational culture can foster commitment to corporate philosophy and values. This commitment generates shared feelings of working towards common goals. Thirdly, organizational culture, through its norms, serves as control mechanism to channel behaviours towards desired behaviours and away from undesired behaviours. Finally, certain types of organizational cultures may be related directly to greater effectiveness and productivity than others.
5.6.1. Culture-Performance Relationships
Drucher (1975) relates management with culture, people and performance. Managerial behavior is the determinant of organizational culture and performance
Organizational culture can have an important effect on firm's long-term economic performance
Organizational culture will perhaps be an even more significant factor in defining the success or failure of firms.
Organizational cultures that obstruct strong long-term financial performance are not rare; they improve easily, even in companies that are filled with sensible and intelligent people
Although it is tough to change but if managers understand what sustains the culture organizational cultures can be made more performance enhancing.
5.6.2. Organizational performance: Concept and measurement
Organizational performance can be explained by the following equations as illustrated by Davis (1986):
Knowledge X Skills = Ability
Attitude X Situation = Motivation
Ability X Motivation = Human Performance
Human Performance X Resources = Organizational performance
5.6.3. Determinants of Organizational Performance
High level organizational performance is possible by effective utilization of its total resources, in broader terms; resources can be described as human, technological and capital and performance in terms of productivity and satisfaction of people. Integration of these resources is done by people who are engaged for accomplishing organizational goals. Organization takes in raw material, people, information and energy from its environment and transforms or converts them into products and services that are exported to this environment. Therefore there is an interaction of people, technology and external environment. Obviously it is a social system therefore it needs a culture that drives it goals and resources.
5.7. Importance of culture in merger process :
Merger occurs when two or more companies combines to form a single company. There are so many reasons why merger occurred. These might includes gaining market share and increase sales and profitability. The market world today is facing increase competition, in such situation organisations will like merge to have popular strategic tools for increasing products portfolios, entering a new market and acquiring new technologies. On the other hand, 80% of mergers do not reach their financial goals and 50% of the mergers fail. (Nahavandi and Malekzadeh 1993) it's true that most merger fail because of financial reasons or economic crisis, and management as well, but we must critically look at the important of culture in the merger process. When two companies merged with different cultures, it will have greater consequences on the organisation. A good example can be seen when two American airline merged call US air and America West. The two airlines had extremely different organisation cultures. US Airways had an older workforce with highly structured bureaucracy, whereas America West had much younger workforce with entrepreneurial culture. In other for this company to succeed, they must adopt to a common culture that will suits the company.
Cultural differences: When employee does not agreed in an organisation because of culture. This will affect their performance in the organisation. Culture play an important role in the way employees will react when they face new business environment. In some situation where merger take place. Some employees have feared that they would lose their jobs; it's difficult for some to work with new members within a team. Some employee will as well developed fears not to take risks in the organisation. At such we need to always make sure that we give a lot time for employee to adapt to the new culture.
5.8. Impact of organization culture on merge:
Organization culture is one of the most important factors of success or failure of a company. Culture of an organization can be defines as set of norms, values and beliefs. These have developed over time unplanned and emergent. Culture will have an enormous impact on the way a company operates today. The important point about culture is that whilst there may be striking differences between organizations, there are shared understanding within them. The culture does not become established until this shared understanding achieves dominance in the collective thinking of them members of the organization. The dominant culture that develops in an organization is the primarily the product of the aims and methods of founders or their successor in senior management combined with their interaction with variety of internal and external forces. The following points below illustrates some important interrelationships that both produce, are deeply affected by the organization culture
Purpose and Goals
Employee skills and attitudes
Use of technology
Customers / competitors
Rules and procedures
Decision- making mechanisms
The purpose and goals of the organization initially trigger the kind of culture that founders of their successors want to see their vision. The extent to which they achieve this culture depends as much on the others factors as on their own leadership. The external environment will also will also play a major role, customers, suppliers shareholders and competitors will exert some influence on what the organization choose to day. However, internally the attitudes of employees, as well as managers will matters a lot. The development of technology and the way it's implemented will create an impact on the organization culture.
5.9. Factors that influence organizational culture :
Change in management
For an organization, change management means defining and implementing procedures and/or technologies to deal with changes in the business environment and to profit from changing opportunities. Change management is one of the main factors that influence organization culture. Change might come in various forms within an organization, such as technological change, change in management staff as well as change in leadership. In the case of technological change within an organization, the organization might adopt this to increase production processes or to improve service quality. In this case the use of technology involves changes to organization. During the 1830s when the industrial revolution started, many organizations changed their management system, work done by hands where later changed to machine. Its affected most organization culture, in the sense that most workers went unemployed, but its increased production and sales and automatically generated more profits which lead to more growth opportunity.
Change of business.
Change of Business influences organization culture. It's important to note that business employs, sells to, buys from is regulated by and is owned by people. Business includes people from different cultures, every business function managing a workforce, marketing output purchasing supplies , will be subject to potential cultural problems. Firms as well as companies and organization which are form of businesses must be sensitive to these cultural differences in order to predict and control it relationships and operations.
Employees are part of an organization, at such they would be unhappy if things are not going well in the organization. In today competitive world, it's important for organization to do all they can to keep their employee happy and motivated. Organizational culture plays a vital role amongst our employees. An organization that has a good culture ensures that its employees are satisfied with the facilities it provides them. This means that taking adequate care of employees ensures organizational effectiveness. This culture also enables employees to work in a comfortable environment that is reflected in the overall efficiency of their work performance.
Geographical locations influence organization culture, in sense that when companies are located in a particular region, they most adopt to the culture of that area in other to succeed. Geographical location might vary in turns of language; language is a factor that greatly affects cultural stability. When people from the same geographical location speak the same language, culture spreads easily. Since countries see language as an integrate part of their cultures, they sometime regulate their languages for examples by requiring that all business transactions be conducted and all made in labels be printed in their languages. Religion is a strong shaper of value; different geographical location has different religions, at such this affects organization culture in that particular region. Major religion of the world includes Buddhism, Christianity, Hinduism, Islam and Judaism- as many factions can affects specific beliefs which may affect business.
1. Change of Management.
2. Change of strategies.
3. Change of business.
4. Change of Geographical location.
5. Change of employees