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Table of Contents
Executive Summary 3
Introduction 4
Chapter 1 Importance of Organizational Culture 5
Chapter 1.1 The Components of Culture 5
Chapter 1.2 Strong and Weak Organizational Cultures 7
Chapter 2 Managing of Organizational Culture 8
Chapter 2.1 Skills needed for Managing Organizational Culture and Culture Change 9
Chapter 3 Organizational Culture Change 10
Chapter 3.1 External Forces 10
Chapter 3.2 Internal Forces 10
Chapter 3.3 Resistant to Change 11
Chapter 4 Consequences on Organizational Performance 14
Chapter 4.1 Company with a strong culture 15
Chapter 4.2 Company with a weak culture 15
Conclusions and Recommendations 17
References 18
Executive Summary
Every company has their own culture about the way things are done in their organization.
A culture gives shape to the company and will be for every company unique.
In the report strong and weak cultures have been discussed. It can be concluded that companies with a strong culture are more profitable and perform better than companies with a weak culture.
It has been looked further at how organizational culture can be managed. It can be noted that managing a culture is not an easy task and management will need to know how to deal with employees’ resistance.
In order to stay competitive, companies will from time to time need to analyze their existing culture in order to find out if it is still appropriate in the current environment and make changes if necessary.
Introduction
An organizational culture has been defined by Schein (1990 cited in Wilson, 2010) as “a pattern of basic assumptions, invented, discovered, or developed by a given group as it learns to cope with its problems of external adaptation and integral integration, which has worked well enough to be considered valid, and therefore is to be taught to new members as the correct way to perceive, think, and feel in relation to those
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