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The Impact of Organisational Culture on Change Management Strategies
Executive Summary
Organisational culture, often described as ‘the way we do things around here’ (Deals & Kennedy, 1982), significantly shapes how businesses respond to change. Culture influences employee behaviour, communication, decision-making, and the adoption of new processes. This report examines the importance of organisational culture in change management, analysing how culture can support or obstruct change initiatives. It includes theoretical perspectives, practical implications, and real-world examples to demonstrate the interplay between culture and change management strategies.
Introduction
Change is a constant in contemporary business environments, driven by factors such as technological advances, competitive pressures, globalisation, and regulatory reforms. Effective change management requires not only structured processes but also alignment with organisational culture. Deals and Kennedy’s (1982) definition highlights culture as the shared values, beliefs, and norms that dictate how work is performed. Understanding this cultural backdrop is crucial for managers seeking to implement change successfully.
The purpose of this report is to explore the significance of organisational culture in shaping change management strategies and to assess whether culture acts as an enabler or barrier during times of organisational transformation.
Understanding Organisational Culture
Organisational culture refers to the collective values, beliefs, customs, and practices that influence behaviour within an organisation (Schein, 2010). It manifests through formal policies, informal routines, communication styles, leadership approaches, and employee interactions.
Deal and Kennedy (1982) categorised culture into four types based on risk and feedback:
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Tough-Guy, Macho Culture – high-risk, fast feedback (e.g., investment banking, sales).
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Work Hard/Play Hard Culture – low-risk, fast feedback (e.g., sales and marketing teams).
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Bet-Your-Company Culture – high-risk, slow feedback (e.g., aerospace, construction projects).
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Process Culture – low-risk, slow feedback (e.g., government agencies, universities).
These cultural types affect how employees perceive change, respond to uncertainty, and adopt new processes.
Schein (2010) further divides culture into three levels:
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Artefacts – visible structures, processes, and behaviours.
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Espoused Values – explicitly stated strategies and philosophies.
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Basic Underlying Assumptions – unconscious beliefs and perceptions guiding behaviour.
These levels interact to influence organisational adaptability and the effectiveness of change initiatives.
Importance of Organisational Culture in Change Management
Culture affects change management in several critical ways:
Employee Engagement and Commitment
A supportive culture promotes employee involvement in change initiatives. When values such as trust, collaboration, and learning are embedded, employees are more likely to embrace change rather than resist it (Kotter, 1996). For example, Google’s culture of innovation encourages experimentation and acceptance of failure, facilitating smooth implementation of technological and organisational changes.
Communication and Transparency
Cultural norms determine how information is shared within an organisation. Open, transparent cultures enable effective communication of change objectives, reducing misunderstandings and resistance (Cameron & Quinn, 2011). Conversely, hierarchical or siloed cultures may restrict information flow, leading to uncertainty and anxiety among staff.
