The reasons for culture clashes and the consequences of culture clashes

Lack of focus

Employees may not understand the values and goals of the new organization.

Preoccupation with the merger

Employees focus their attention
and energy about the fact of fusion rather
focus on their own work.

Sense of division

Employees focus on the differences between
employees of the merging companies instead of in their
common purpose and its many similarities.

Sense of isolation

Managers focus on the strategy of the
new organization and the employees feel isolated and ignorant.

Unresponsive management

Employees feel that managers
are not concerned with their welfare.

Lower productivity

Lack of familiarity with rules and procedures.

Higher labour turnover

Increased labor turnover is especially problematic when the main purpose of the merger was to form more capital
human.

Various types of conflict in the workplace

Differences between cultures are likely to increase conflict.

Decreased profitability

Workers are less productive and conflict in the workplace increases.

Bankruptcy or failure

Bankruptcy or receivership - if the problems of a merger are severe enough, the organization may be at risk of bankruptcy or failure.

Different comfort levels with diversity

Diversity or ethnocentric

Different degrees of formality

Formal or informal

Different languages

Verbal and Verbal and non-verbal communication

Different leadership styles

Autocratic, democratic, partenalistic, laissez - faire and situational

Different orientations to tasks and to people

Task-oriented or relationship-oriented

Different practices

Different countries or cultures

Different senses of time

Fixed time and or a more fluid sense of time.