Organizational culture change is the method of transforming the new culture, values, norms, beliefs, and communication channels. The organizational culture change comprises various internal and external factors. Many change leaders have been pondering the question of whether the culture change is right for the organization or not. Today, we’ll discuss the advantages and disadvantages of culture change; and their advantages and disadvantages separately.
Advantages of Organizational Culture Change
Let’s discuss the advantages of organizational culture change in advantages and disadvantage of culture change; they’re as follows;
Agility
A research study conducted by Deloitte showed that organizational agility plays a key role in its growth and success. It amplifies their capability to adapt to the changes relevant to the changing business landscape. Employees and team members focus on adopting, it is necessary for the company’s capability to regularly and continuously change.
Many research studies have shown that Businesses and companies have a culture of adaptability, they explore changes quickly and efficiently relevant to the customer needs and requirements. The capability of businesses to be agile is a clear competitive edge in a highly changing business environment. If companies have the ability to accept and adapt to change, they will achieve growth and success.
Employee Retention
Organizational culture plays a key role in attracting and retaining the right employees and team members. The company’s identity and thriving culture would attract people because it resonates with them. Growing and thriving employees and team members would stay, and the others would leave. However, it offers them a great advantage and competitive edge of culture change.
The method and process of changing the organizational culture is difficult, and it only attracts the right types of employees. If you are aware of the significance of organizational culture, then make sure that your organization is attracting and retaining the right type of employees.
Higher Productivity, Morale, and Confidence
The culture change offers various advantages to the employees and team members. One of the main advantages is that it amplifies their productivity. Employees and team members have the motivation to collaborate and coordinate in a positive working environment. It fosters a culture of innovation and creativity and encourages employees to openly share their ideas and thoughts.
However, the other benefit of culture change is boosting their morale and confidence level. Employees would feel appreciated and valued in a supportive and open working culture. It amplifies their job satisfaction level and their commitment to the change project.
Better Organizational Environment
A research study conducted by Harvard Business School showed that employees and team members working in a positive workplace environment; they’re willing to work hard put in extra effort and engage with their work. As a result, it amplifies the company’s growth and productivity.
The author of the study Professor Ethan S Bernstein believes in the fact that the right culture improves employee engagement and makes the transition phase smoother and streamlined. A healthy working culture offers you various benefits and advantages, not just for employees but also for the company by attracting top talent.
Business Processes
The organizational culture reflects the company’s values, beliefs, and employee behavior. If a company is going through a culture change, it shows employees behavioral transformation in how they connect and engage with their colleagues and customers. The culture change would companies improve their business efficiency and processes. When employees and team members collaborate with one another to reach a common goal and objective, growth and success become easier for them.
Disadvantages of Organizational Culture Change
Let’s discuss the disadvantages of organizational culture change in advantages and disadvantage of culture change; they’re as follows;
Change Resistance
The organizational culture has very deep-seated beliefs, values, and roots. When you try to change the company’s culture and values, then it brings a lot of employee resistance. In fact, they prefer to leave the organization collectively, instead of adapting and conforming to the company’s new culture. The culture change is highly stressful for them and decreases the job satisfaction level because it causes a lot of uncertainty and confusion among them.
High Failure Rate
It is highly difficult to convince employees and team members to change their culture, thinking, attitude, and behavior. The culture change is expensive in terms of time and capital resources by conducting training programs and hire external consultants. However, it is highly probable that the change program would fail with the best execution of the change initiative. The risk of failure of a culture change initiative is always there; there is a guarantee of its success.
Costly Culture Change
Companies need to invest a significant amount of capital resources in training programs and external consultation. Employees would lose their morale and motivation level and the company would suffer the loss in productivity. The culture change project is highly disruptive; it causes confusion, uncertainty, division, and resistance among employees. Companies should only launch the culture change project if everyone is on board with the change initiative.
Losing Company’s Identity
When employees are working in a particular workplace culture, they develop chemistry with their peers and colleagues. The culture change would break the bond among employees and team members in the workplace. They feel like they don’t belong in the changed working culture, and they become less engaged in their work. As a result, employee productivity would decline leading them a higher employee turnover rate.
Culture Change Time Consuming
Culture change is a highly time-consuming process and it takes a lot of time for them to change the employee attitude and behavior. If the company has a massive size, then it receives a lot of backlash and resistance from the employees and team members. The time and captive invested in the training programs and consultations would go to waste.
Conclusion: Advantages and Disadvantages of Culture Change | Pros and Cons of Organizational Culture Change
After an in-depth study of the advantages and disadvantages of culture change; we have realized that organizational culture change requires a lot of time and resources. If you are learning about the pros and cons of organizational culture change; you should keep in mind the abovementioned pros and cons.
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