Organisational Culture and Strategic Management

Paper Summary:

This paper examines the relationship between organizational culture and organizational strategy and how any strategic change must always be accompanied by appropriate culture change. It explores the three types of change that are apparent in organizations starting with apparent change, where new problems are confronted by choosing a range of different options permitted by the company culture. It then looks at cultural incrementalism where strategy stretches the existing organizational culture to include new values alongside the old ones followed by revolutionary change where strategic change is imposed upon the organization, which does not comply with existing cultural values and believes and requires the organization to create new values and symbols in order to achieve the desired change.

From the Paper:

"The opposite of strategic drift is strategic fit. This is also known as the process of incremental development. Quinn (1980) and Lindblom (1958)11 have argued that incremental development in organizations is not only inevitable, but also logical. Managers are aware that it is not possible to know about all the influences that could affect the future of the organization. So to cope with uncertainty, strategies must be developed in stages, carrying members of the organization with them. This allows the organization to try out new ideas and experiences to see which are likely to be effective and to stimulate commitment within the organization through continual, but low scale change."

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