Organizational Culture

Types, Functions & Strengths

Introduction

Organizational Culture

A pattern of collective behaviors and assumptions that are taught to new members of an organization as a way of perceiving, thinking and feeling Formed by the organizations Values Visions Norms Working language Beliefs and habits Systems Symbols Etc.

Organizational Culture
The Cultural Web

The Paradigm: Mission, Vision, Objectives, Values

Control Systems: The processes in place to monitor various activities within the organization Organizational Structures: Reporting lines, hierarchies, etc. Power Structures: Authoritative hierarchy Symbols: Logos and designs, power symbols such as exclusive parking spaces, executive washrooms, etc. Rituals and Routines: Management meetings, board reports, etc. Stories and Myths: Stories about employees and events, what is valued within the organization, etc.

Organizational Culture

Affects the way people and groups interact with each other, with clients, and with stakeholders Guides interpretation and action in organizations by defining appropriate behavior for various situations Although a company may have "own unique culture", in larger organizations, there is a diverse and sometimes conflicting cultures that co-exist due to different characteristics of the management team Organizational culture may also have negative and positive aspects

Types

Some popular models are

Hofstedes Cultural Dimensions Model (1980) Charles Handy Model (1976) Kim Cameron and Robert Quinn Model (1999) Gerry Johnsons Cultural Web (1988) Robert A. Cooke Model (1987) McGuires Entrepreneurial Culture (2003)

Hofstedes Model

Power Distance Index (PDI)

High PDI cultures acknowledge people based on their position in the hierarchy. Low PDI cultures treat people equally regardless of positions

Individualism vs. Collectivism (IDV)

Individualistic cultures (high IDV) stress on personal achievements and individual rights. Collectivist cultures (low IDV) act as a life-long and cohesive group or organization

Masculinity vs. Feminity (MAS)

High MAS cultures value competitiveness, assertiveness, materialism, ambition and power. Low MAS cultures value quality of life and relationships

Hofstedes Model

Uncertainty Avoidance Index (UAI)

High UAI cultures believe in step by step planning and implementing rules, laws and regulations. Low UAI cultures feel comfortable in unstructured situations and try to have as few rules as possible

Long Term Orientation vs. Short Term Orientation (LTO)

High LTO cultures attach more importance to the future and value rewards, including persistence, saving and capacity for adaptation. Low LTO cultures promote values related to the past and the present like steadiness, respect for tradition, reciprocation and fulfilling social obligations.

Charles Handy Model

Power Culture
Concentrates power among a small group or a central figure and its control radiates from the center like a web. Power Cultures need only a few rules and little bureaucracy but swift in decisions

Role Culture
Authorities are delegated as such within a highly defined structure. These organizations form hierarchical bureaucracies, where power derives from the personal position and rearly from an expert power. Control is made by procedures (which are highly valued), strict roles descriptions and authority definitions. These organizations have consistent system and are very predictable

Charles Handy Model

Task Culture
Teams are formed to solve particular problems. So power derives from expertise with team requiring expertise, it is all a small team approach, where people are highly skilled and specialist in their own markets of experience. These cultures often feature the multiple reporting lines of a matrix structure

Person Culture
Formed where all individuals believe themselves superior to the organization. It can become difficult for such organizations to continue to operate, since the concept of an organization suggests that a group of like-minded individuals pursue organizational goals. However some professional partnerships operate well as person cultures, because each partner brings a particular expertise and clientele to the firm

Cameron & Quinn Model

Clan Culture (internal focus & flexible)

A friendly workplace where leaders act like father figures

Adhocracy Culture (external focus & flexible)

A dynamic workplace with leaders that stimulate innovation

Market Culture (external focus & controlled)

A competitive workplace with leaders like hard drivers

Hierarchy Culture (internal focus & controlled)

A structured and formalized workplace where leaders act like coordinators

Robert A. Cooke Model

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Entrepreneurial Culture

Entrepreneurial Organizational Culture (EOC) is a system that believes that creativity, tolerance, innovation & seizing market opportunities can help deal with problems of

survival and prosperity, environmental uncertainty, and competitors' threats

Elements of EOC
People and empowerment focused
Value creation through innovation and change Attention to the basics Hands-on management Doing the right thing Freedom to grow and to fail Commitment and personal responsibility Emphasis on the future

Functions

Functions of organizational culture are

External Adaptation Internal Integration Anxiety Reduction

External Adaptation
Coping Elements Mission & Strategy Goals Means Measurement
Correction

Management Leadership System Set Strategic Direction & Policies Establish Key/Critical Objectives Structure, People Empowerment
Establish Planning & Control System

Internal Integration
Coping Elements Common Language
Inclusion Criteria Stratification Peer Relationships Reward Allocation Ideology

Management Leadership System Facilitates Communication & Bonding

Accountability, Responsibility & Authority Cross Function Team Building Evaluate Performance Establish Procedures / Values Clarification

Anxiety Reduction
Some of the anxieties than can be reduced
Absence of shared language & experiences Being exposed to hostile environmental conditions Dangers inherent in unstable social relationships Anxiety associated with certain occupational roles such as coal mining and nursing Anxiety of uncertainty and confusion

Strengths

Strengths of organizational culture are

Shared values, perceptions, language and experiences Enhanced goodwill & mutual trust Enhanced cooperation & cohesiveness Higher commitment to work, better relationships Efficient decision making process due to fewer disagreements

Strengths of organizational culture are

Predictable and consistent behavior at work Enhanced control within the organization Boundary-defined roles Imparts a sense of identity Brings uniqueness to an organizations style of working