Up until two years ago, E Company enjoyed a monopoly position in the energy industry. However, a…

Up until two years ago, E Company enjoyed a monopoly position in the energy industry. However, a change in government policy has meant that new competition has been encouraged to move into the industry with E Company losing its monopoly. The company now finds itself facing severe difficulties. E Company has developed a strong culture over the years which can be typified as a role culture. This is now acting as a barrier to the organisation’s ability to change, to become more flexible and to be able to respond more quickly to changes in the environment and initiatives by its competitors. E Company is falling behind its competitors when it comes to innovations in energy services. Developments in new services require staff to work together across functional boundaries. However, this is unheard of in E Company where people fiercely protect their functional specialism and will only work on the tasks specified in their job descriptions. Requirements (a) Discuss why the characteristics of a role culture may no longer be appropriate for E Company. (b) Recommend, with reasons, the type of culture to which the company now needs to move to.

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