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Organizational culture shaped by the company's leaders/founders

Organizational cultures have often been fashioned or influenced by the original founders/leaders of the company. However, in a significant number of cases, these cultures have later tended to diverge radically from the founders' original ideals.

Offer suggestions as to why and how this divergence occurs? Are there any past corporate instances or examples of this that come to mind? For those instances, what effect has the change in organizational culture had on the company's performance?

Approx 200 words, Please include references.

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Organizational Culture and its Divergence

Organizational culture refers the set of beliefs, norms and values follows by an organization to cope with the changing world. Organizational culture mainly develops by the founder/ leader of the firm, but due to the changes and divergence in the both internal and external environment, the culture of the organizations vary (Robbins, 2007).

The main reasons behind divergence occurrence are the globalization, innovation of the technologies, changes in the political and legal environment of the countries, economic, social and educational development, etc. (Ulrich, Allen, Smallwood, Brockbank & Younger, 2009). One of the most important examples of changes in organizational culture is the Wal-Mart. ...

Solution Summary

The following solution helps with questions regarding organizational culture and a company's leaders and founders.