ORGANIZATIONAL CULTURE -TYPES

OUTLINE

The culture of an organization can have a significant role in its success. The culture that an organization cultivates has a significant impact on whether it succeeds or fails. There are various cultural types inside organizations. The goals and methods by which an organization operates are specific to its culture. The objectives and structure of an organization have a big impact on how its culture develops and takes on its final form. Different organizational culture types have been identified by researchers. Charles Handy, Quinn and Rorbaugh, and Deal and Kennedy are notable examples of this. This classification aids organizations in understanding the kind of culture they ought to embrace or the adjustments that ought to be made to the current culture in order to get rid of the bad and emphasize the good.

TYPES OF ORGANIZATIONAL CULTURE

It's a common belief that you must closely study an organization's employees in order to comprehend its culture. An organization's founding members labor to create its culture in the early years. Both the top management and the organization's founders must actively participate in maintaining and enhancing the culture of the organization. Over time, the organization changes and begins incorporating features that it thinks are essential to its culture while eliminating those that it believes are unwelcome or detrimental.

An organization experiences structural and functional changes as it expands in size. These modifications have an impact on the current culture, which causes the culture to change. In addition, each organization has certain beliefs, fundamental values, goals, and aims that are specific to it. The organization's culture is shaped by these factors.

As a result, in general, no two organizations can have precisely the same culture. Organizational cultures can be broadly classified into the following types:

Strong culture/weak culture

Hard culture vs. soft culture

Cultures that are formal and informal

Let's now go into more detail about these various organizational culture types.

Strong Culture vs Weak Culture

An organization that possesses a robust culture will exhibit the subsequent traits: Knowing its advantages and disadvantages

Being conscious of the opportunities and hazards that are present

Robust team culture and leadership

Devoted and faithful workers

Not many rules and regulations

Low rate of attrition

Workers who have a clear understanding of the organization's mission, vision, and other overarching objectives

Workers who are familiar with the lore and mythology around the company

Strong organizational cultures have been likened in management studies to a social glue or strong adhesive that holds all of the individuals of the organization together.

The following traits will be present in an organization with a weak culture:

Lack of knowledge of one's own strengths and weaknesses: A company with a weak culture may not be conscious of its own advantages and disadvantages. Even if it is aware of them, nothing substantial is done to address the shortcomings and take use of the advantages.

Lack of knowledge of opportunities and risks: A company with a weak culture may also be unaware of its opportunities and possible threats and may not take any action to address them.

Ineffective leadership is seen in a culture that lacks strength.

Employees in cultures that lack strength tend to place more emphasis on personal objectives than on those of the company. The employees' relationship to the organization's mission, vision, and other overarching goals is not entirely clear.

The multiplicity of policies and procedures: In an underdeveloped culture, there are an excessive number of rules, guidelines, and methods for completing tasks. They might not be adhered to rigorously, though. These kinds of organizations nearly invariably have a bureaucratic culture where every task requires numerous steps.

High attrition rate: Weakly cultured organizations typically have high attrition rates.

Inability to relate to myths and tales: Workers from weaker cultures may not even be aware of the organization's myths and stories, let alone be able to relate to them.

It's abundantly evident from the conversation thus far that robust organizational cultures outperform feeble ones. This is because it is possible to alter a poor organizational culture more easily than a strong one. On the other hand, changes in a strong culture have to be implemented carefully.

Soft Culture Vs Hard Culture

Multiple, competing aims: Organizations with soft cultures lack a distinct set of goals or objectives. Let's take the scenario where an organization has been established in a remote location. The establishment of the organization was justified by the management's desire to fulfill their dual obligations of corporate social responsibility (by giving locals jobs) and profit generation (by using inexpensive labor). However, the organization accrues a substantial debt after ten years of operation. Because of how serious the matter is, the organization might have to close if it is not handled correctly. The organization did not introduce new technology, took longer than necessary to complete tasks, or made other crucial decisions. Nevertheless, aside from all of these issues, the organization's founders overlooked a crucial point: corporate social responsibility can only be achieved once the business reaches a specific size and starts to turn a profit. Thus, in order to advance the organization's development, the organization should have only employed labor as needed and implemented new technologies.

Insufficient discipline: Workers frequently exhibit a lack of discipline, and management frequently resorts to using force and authority to accomplish tasks.

No group decision-making: Top management makes all organizational choices. The method of making decisions does not involve the employees.

Result-oriented culture: Workers receive explicit instructions about their accountability and responsibility for their work.

A hard work culture differs from a soft work culture in that it possesses the following traits:

Clearly stated objectives: The organization has a well-defined set of goals, and its staff members are aware of them. The staff puts a lot of effort into achieving the organization's goals because they value them.

Workplace discipline: The staff members uphold discipline in their workplace. The administration has should reserve the use of disciplinary action for dire situations.

Making decisions collectively: In this type of organization, senior management and staff members collaborate to make decisions.

Excellent workplace culture: Hard organizations typically have a nice and congenial atmosphere. Given the importance of the employees' interests to the organization, they receive excellent care.

FORMAL CULTURE VS INFORMAL CULTURE

One can typically classify a culture as formal or informal. It is important to acknowledge that an organization's culture has both official and informal elements. Rules and regulations, roles and responsibilities, and accountability are the formal components of an organization. Informal communication and a flat organizational structure are examples of informal components. Formal and informal components might differ in degree. The culture can be classified as either formal or mostly informal based on the quantity and degree of formal and informal components. An organization's culture will be mostly formal if it has a higher proportion of formal than informal elements. Conversely, an organization's culture will lean more toward informality if it has a higher proportion of informal than formal elements. Every task that members of the organization must do is governed by explicit rules and regulations in a formal culture.

Every worker is answerable for their own labor. Each employee's expectations for the amount of work that needs to be done are outlined, along with the penalties for failing to meet those objectives. A formal organizational culture consists of the following elements:

Clearly stated goal and vision: They’re talking about the benchmarks that the organization as a whole needs to hit.

Policies: These are the formal regulations that act as a framework for organizational decision-making. Formal cultures include a lot of rules to make sure things are done correctly. If these policies are not carefully crafted, there is a chance that loopholes will manage to find their way in.

Procedures: These are the written directions needed to complete a specific task. Well-crafted procedures can aid in the efficient operation of an organization.

Rules: These are directives that members of an organization must abide by. They might have to do with a certain facet of their regular schedule, such knowing when to arrive and depart the office.

Stage of an organization's life: An organization's culture is dependent on based on the life cycle stage at which an organization is in.

An organization could be in one of four stages: early development, growth, maturity, or decline. Establishing an official and high-quality culture is a common goal of organizations in their early stages of development.

The following traits are present in a primarily informal culture:

There are some variances in the position and authority of employees across several levels, but not much. Openness and kindness are far more prevalent. Furthermore, these groups frequently accomplish status parity.

Flat hierarchies or relatively few levels of hierarchy are typical in informal cultures.

The manager consults with coworkers and staff members before making decisions, allowing for a collaborative approach.

Managers receive direct input from staff members without any use of complex feedback mechanisms.

A relaxed and friendly environment exists in informal cultures.

Other categories of organizational cultures, as reported by various authors

Numerous scholars and writers have recognized distinct organizational culture types in addition to those covered in the preceding section. For example, Deal and Kennedy created a paradigm for classifying organizational culture in 1982. The Competing Values Framework (CVF), developed by Quinn and Rorbaugh in 1983, is a tool for evaluating organizational culture. The various categories of organizational cultures were covered by Charles Handy in his 1999 book "Understanding Organizations."

CLAN CULTURE, HIERARCHY CULTURE, ADHOCRACY CULTURE AND MARKET CULTURE

Quinn and Rorbaugh established the Competing Values Framework (CVF) in 1983 as a tool for evaluating organizational culture. The two dimensions of flexibility/control and internal/external orientation served as the foundation for this approach.

Orientation is the subject of the first dimension. In this context, "orientation" refers to an organization's focal points. While external orientation emphasizes values like differentiation, competitiveness, and rivalry, internal orientation includes a focus on values like integration, unity, and collaboration. Internally focused organizations prioritize their goals and those of their workforce, whereas externally focused organizations concentrate on their clients, partners, and the surrounding community. For instance, you might have seen that companies give rewards to staff members who keep positive working relationships and adhere to procedures. However, some organizations reward staff members that drive internal competition within the company and carve out a distinct market for it. External orientation is prioritized in an environment where customers and external stakeholders are of utmost importance. In contrast, internal orientation is prioritized in organizations where external stakeholders and customers are not as significant. Organizations with monopolies exhibit internal orientation.

The second component has to do with control and flexibility. Organizations that allow their employees to use their judgment or make decisions based on the circumstances are said to be flexible. If these workers make wise selections, they get rewarded. Conversely, control describes an organization's expectation that its workers will adhere to protocols and are prohibited from exercising any discretion in decision-making. For instance, although some organizations emphasize adaptability and flexibility, others reward performers who are steady, dependable, and constant. Four distinct cultural forms arise from the amalgamation of the two previously mentioned elements.

Let's now go into more depth about each of the cultural categories as Quinn and Rorabaugh defined them.

Clan culture: An organization is considered to have a clan culture if it prioritizes flexibility, has little regulations, and is internally focused. Teams and workers in these types of organizations often have a fair amount of autonomy and a flat organizational structure. The driving forces behind the organization's success are its vision, mission, and common goals. In general, a clan is a group of families that coexist peacefully and modestly as a civilization. When referring to coworkers and devoted employees, an organization uses the term "clan." Strong leadership is demonstrated by those who develop and foster talent and skills of new employees.

There aren't many strict policies and guidelines.

There are unwritten norms within the organization that are spread through word of mouth. For instance, the online shoe and clothing retailer Zappos has a clan culture. Tony Hsieh, the CEO of the business, constantly aims to satisfy clients and staff.

They are regarded as a crucial component of the company. Zappos's basic values consist of:

Provide WOW through your assistance.

Accept and promote change

Make things exciting and a little strange.

Be bold, imaginative, and receptive.

Seek development and education

Establish transparent and sincere connections through dialogue

Create a feeling of family and team unity.

Be driven and enthusiastic and accomplish more with less.

Have humility

Adhocracy culture: An organization can be classified as having an adhocracy culture if it places a strong premium on flexibility, has few rules, and is externally driven.

Within these establishments, Workers have a great deal of flexibility. Strong and cautious leadership only takes measured chances. These organizations know exactly where they want to go. These organizations can swiftly assemble teams to take on any additional tasks and complete the job. One international technological company that adheres to the adhocracy culture is Google. It commands a commanding lead in the industry. Google leads the industry because it creates cutting-edge products and procedures.

Culture of hierarchy: An organization can be classified as having a hierarchical culture if it is internally focused, has more controls, and prioritizes stability. Such organizations have a formal, rigid chain of command. In civilizations that follow a hierarchy, rank and power are important factors. In these kinds of organizations, the main responsibility of leaders is to keep an eye on workers' actions and work across departments to make sure that tasks are completed on schedule and effectively. McDonald's is one instance of an organization with a hierarchical culture. It respects standardization and has a clear leadership and decision-making framework. Ensuring constructive leadership is the duty of each line manager in a branch. Rather than the accomplishments of a single person, McDonald's success is the result of collaboration.

Market culture: An organization is said to have a market culture if it prioritizes stability, has a strong external focus, and has a lot of controls. All internal and external interactions in this kind of organization are seen through the lens of the market. Transactions are completed as quickly and cheaply as possible between the organization and outside parties. These organizations are competitive and goal-oriented. The executives in these companies are committed to producing outcomes. The global American conglomerate company General Electric (GE), is a good example of market culture. It has a competitive and result-oriented work environment. GE’s employees are productive and leaders are demanding.

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