4 Types of Organizational Culture

 

What is Culture?

There are a variety of meanings of culture in literary works. To be effective, all cultures need the existence of a group, as well as a shared set of normative beliefs and behaviours.

Belief systems and value orientations that impact customs, conventions, practises, and social institutions, including psychological processes (language, care taking behaviours, media, educational systems) and organisations (media, educational systems) have been defined as "Culture" (APA, 2002).

While the formal structure of an organisation may be seen as a manifestation of the organization's culture, Bush (2003) claims that symbols and rituals are more important than the structure itself. Individuals have particular beliefs and values that impact their behaviour and how they perceive the behaviour of other members of their group. Symbols and rituals serve to reinforce and transmit these standards, transforming them into collective traditions.

What is Organizational Culture?

Schein (1992) defined organizational culture as "a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid, so that it can be taught as the correct way in which to perceive, think, and feel in relation to those problems" (p. 12). As a result, Harrison (1993) defines organisational culture as the unique set of ideas and values, as well as work methods and relationships that separate one company from the other. To put it another way, an organization's culture is made up of all the characteristics that make it unique. Organizational characteristics such as authority, role, success, and support may therefore be seen in four different ways.

Based on these two elements, organisational culture is classified as follows: (1) internal emphasis and integration vs outward focus and distinctiveness; and (2) flexibility and discretion vs. control and stability. Clan, Adhocracy, Hierarchy, and Market organisational cultures are the four primary quadrants formed by the overlap of these two dimensions. Figure 1 depicts the various organisational cultures and their features.

Types of Organizational Culture

Clan Culture

The Clan Culture is a sort of corporate culture that encourages employees to share a lot of personal information with one other. In many ways, it's like having a second family. The organization's leaders are seen as mentors and, in some cases, parents. Loyalty or tradition hold the group together. People are really dedicated. To achieve long-term success, the company places a high value on employee morale and cohesiveness. A company's success is measured by how well it treats its customers and how much it cares about others. An emphasis is placed on cooperation, involvement, and agreement in the workplace.

Adhocracy Culture

Adhocracy is characterised by a vibrant, enterprising, and creative work environment. Under this culture type, people put their necks on the line. Leaders are seen as pioneers and risk-takers because of their innovative ideas. Innovation and experimentation are the glue that keep the company together. The focus is on being at the cutting edge of things. It is the long-term goal of the organisation to expand and acquire additional resources. Product or service innovation is the key to success. Becoming a product or service leader is crucial. Individualism and independence are encouraged by the group.

Hierarchy Culture

Hierarchy culture centred organisations are institutionalised workplaces. People's actions are regulated by procedures. The leaders take great satisfaction in their abilities as efficient and effective planners and organisers. A well-functioning business requires constant attention to detail. Organizations are held together by a set of formal rules and procedures. Stability and performance over the long term are the most important considerations, as are smooth, efficient operations. Delivery reliability, seamless scheduling, and reasonable costs are all indicators of success. Security and predictability are the primary goals of personnel management.
 

Market Culture

Profitability is a top priority in today's market culture. Employees and leadership positions are generally separated by numerous layers of hierarchy, and each job has an objective that is connected with the company's greater aim. As a consequence, market culture-oriented companies prioritise exterior success above interior happiness. Such firms expect its employees to achieve milestones and goals. Market-oriented businesses are more lucrative and successful than those that are not. Employees have a common goal to strive toward since the business is externally orientated.

In contrast, because the company's projects, positions, and decisions are tied to specific number, it's tough for workers to completely commit to their job and fulfil their professional goals. It's also possible to get overworked in a fast-paced and hostile workplace. A market culture firm's ultimate objective is to strive for excellence in its chosen sector and business. As a result, they are often bigger organisations that are already market leaders. They're aiming to outdo and outperform everybody else in their field.

 

Competing Values Framework

 

Figure 1: The Competing Values Framework (Source: Cameron & Quinn, 2011, p. 75)
 

The organisational culture assessment instrument, or OCAI for short, is a tool used to identify a company's dominant organisational culture type (Aldhuwaihi, 2013). Six questions make up this section. It is possible to choose one of four possible answers for each question.

 Conclusion

However, one thing is certain: the sort of organisational culture that a business adopts will be determined by its core beliefs and goals. As an example, businesses that value stability and control are more likely to choose hierarchical and market cultures, whereas those that value flexibility and discretion are more likely to prefer clan and adhocracy. Identifying your company's most essential values would help you choose which form of corporate culture to adopt.

 

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Some References

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Harkins, P.J. (1998). Why Employees Stay--or Go Workforce, 77(10): 74-78.

Hassan, R. (2014). Factors Influencing Turnover Intention among Technical Employees in Information Technology Organization: a case of XYZ ( M ) SDN . BHD. International Journal of Arts and Commerce, 3(9), 120–137.

Hayes, L., O’Brien-Pallas, L., Duffield, C., Shamian, J., Buchan, J., Hughes, F., Spence Laschinger, H., North, N., & Stone, P. (2006). Nurse turnover: A literature review. International Journal of Nursing Studies, 43(2), 237-63.

Hofstede, G. (1991). Cultures and organisations: Software of the mind. London, United Kingdom: McGraw-Hill.

Hofstede, G. (2009). Dimensionalizing cultures: The Hofstede model in context. In W. Lonner, D. Dinnel, S. Hayes & D. Sattler (Eds.). Conceptual, methodological and ethical issues in psychology and culture. Bellingham, WA: Center for Cross Cultural Research.

Hoonakker, P. (2008). Turnover and Retention in the Information Technology Workforce. Univeritat wien.

Hulin, C.L., Roznowski, M. and Hachiya, D. (1985). Alternative opportunities and withdrawal decisions: Empirical and theoretical discrepancies and an integration. Psychological Bulletin, 97, 233-250.