1. Jim Carpenter who had been CEO for thirty years was very well liked by his employees as he treated them like family. He believes it was important to treat people right so they would have a sense of loyalty to the company. This resulted in a low turnover and the company was efficient and profitable. Whenever the business seem slow he never lay off his employees but will transfer them to do other tasks even if it was not related to their skills. This show a non-constructive corporate culture within the organization. Furthermore, by focusing on employee involvement, he also implemented the clan culture in his organization. Not only he provided training programs, in both communication and human resources, Jim also did not implement performances goals or standards for each department. Instead, he insisted on letting managers run their departments in the manner that they believe would get the best results. This gives them more freedom and resulted in employees enjoying their work and doing beyond their job requirements. However later due to the merging of multiple competitors, National started to struggle financially and find it difficult to adapt to new external challenges.

2. Due to trend of declining sales and higher cost of operation, they had Jim retired and the new management saw the need to bring change to the organization. They set performance objectives in order to have a standard level of production as well as measure their performance over an agreed upon time period. When an organization decides to go through organizational culture changes, the process can be daunting and often tough to get employees onboard. Changing of company culture may start from the top level but if it cannot be carried out throughout the organization, it is meaningless. Managers should restore trusts in their employees, motivate and help one another to accommodate to the new