Organisational cultures are intricate ecosystems, and within them, subcultures naturally emerge. These smaller groups, characterised by distinct norms, values, or behaviours, can foster innovation and agility. However, they can also morph into countercultures—groups that actively oppose and destabilise the broader organisation. Preventing this transformation requires a nuanced understanding of organisational dynamics, effective leadership, and a commitment to diversity.
One common reason for subcultures turning into countercultures is a lack of cultural alignment from the outset. Kamlesh Dangi, Group Head HR, InCred, recalls a graduate training programme that ended in attrition due to misaligned expectations between the new hires and the established culture. This highlights a critical point: when subcultures are not properly integrated, their unique perspectives can clash with existing norms, creating friction and division.
Subcultures can also become countercultures when their interests clash with the broader organisational goals. This is particularly common in specialised departments or unions, where the focus on specific agendas may override the company’s larger objectives. Ganesh Chandan, president and group CHRO, Kalyani Group, emphasises the importance of strong leadership in defining and driving the desired culture. Without this, subcultures can begin to operate in ways that undermine the organisation’s ability to adapt and grow.
Mergers and acquisitions often bring together organisations with distinct cultures, which can lead to conflicts if not managed properly. Pradyumna Pandey, Head HR Manufacturing, Hero Motocorp, recounts a merger where cultural integration was poorly handled, resulting in dissatisfaction and the formation of a counterculture. A classic example of this is the merger between Daimler-Benz and Chrysler, where the clashing cultures contributed to the failure of the merger.
“Creating a culture by design is vital. Leaders must actively define and reinforce what is acceptable and desirable within the organisation. This can be achieved through consistent behaviours that exemplify the organisation’s values. If leaders only pay lip service to these values, employees will interpret and implement the culture in their own ways, potentially leading to fragmentation.”
Ganesh Chandan, president and group CHRO, Kalyani Group
Internal dynamics, such as changes in leadership or shifts in ideology, can also play a significant role in the radicalisation of subcultures. When leadership changes bring new priorities or management styles, existing subcultures may resist, leading to the emergence of countercultures. Pandey observes that in one of his previous organisations, internal dynamics led to the development of two distinct cultures—one aligned with the parent company and the other with a subsidiary—resulting in a clash of values.
A lack of diversity in hiring can also contribute to the dominance of specific subcultures, which may not align with the broader organisational culture. McKinsey & Company’s heavy recruitment from elite Ivy League schools in the 1990s is a case in point. While this practice initially brought in top talent, it also created a homogeneous workforce resistant to new ideas. As McKinsey expanded globally, this lack of diversity led to friction with regional offices, where different values and work styles were more prevalent.
“A merger where cultural integration was poorly handled, resulted in dissatisfaction and the formation of a counterculture. A classic example of this is the merger between Daimler-Benz and Chrysler, where the clashing cultures contributed to the failure of the merger.”
Pradyumna Pandey, Head HR Manufacturing, Hero Motocorp
Preventing the evolution of subcultures into countercultures requires proactive measures. Dangi emphasises the importance of communication in building trust and a unified vision within the organisation. “Leaders must ensure that all employees understand and align with the organisation’s core values,” he says. This involves ongoing dialogue, not just top-down directives.
Chandan adds that “creating a culture by design” is vital. Leaders must actively define and reinforce what is acceptable and desirable within the organisation. This can be achieved through consistent behaviours that exemplify the organisation’s values. “If leaders only pay lip service to these values, employees will interpret and implement the culture in their own ways, potentially leading to fragmentation,” he warns.
“A graduate training programme ended in attrition due to misaligned expectations between the new hires and the established culture. This highlights a critical point: when subcultures are not properly integrated, their unique perspectives can clash with existing norms, creating friction and division.”
Kamlesh Dangi, Group Head HR, InCred
Diversity also plays a key role in preventing subcultures from becoming countercultures. By ensuring a mix of genders, ethnicities, regions, and experiences, organisations can foster a more inclusive environment where different perspectives are valued. This helps prevent any single group from dominating the culture and driving it away from the organisation’s core values.
Subcultures are an inevitable part of any large organisation, but they must be managed carefully to avoid becoming countercultures that undermine organisational cohesion. By defining their culture clearly, communicating effectively, promoting diversity, and leading by example, organisations can harness the benefits of subcultures while preventing them from turning into countercultures that threaten their stability and success.