Organizational Culture
Organizational Culture
Organizational Culture
Organization Behavior
Topic: Organizational Culture
Prepared for
Ms. Fahima Mehjabeen ecturer !epartment of Business "dministration #tamford $niversit% Bangladesh
Prepared B%
Organizational Culture
Through decades of empirical research, scholars have established abundant links between organizational culture and organizational performance. While previously businesses were either unaware of cultures importance or believed it too difficult to manage, today they recognize that it can be used for competitive advantage. This is something that Apple omputer gets. !y leveraging their culture of innovation toward product as well as internal processes, they have been able to survive " despite incredible competition " as well as venture into new and profitable markets. !ut in order to use culture strategically, a company first needs to understand its culture. And theres the rub. ulture is a comple# issue that essentially includes all of a groups shared values, attitudes, beliefs, assump$ tions, artifacts, and behaviors.
organizational characteristics across two dimensions that were found critical to organizational effectiveness. The spatial implications for each type are presented so that workspace planners
might be able to interpret the results of an organizational culture assessment in their process of designing environments that support the way companies work and represent themselves
Fle/ibilit%
"dhocrac%
0/ternal force
1ierarch%
Mar&et
organizational structure.
COMPETE $MARKET&
While most ma4or American companies throughout the 56th and much of the 78th centuries believed a hierarchical organization was most effective, the late 5698s gave rise to another popular approach" ompete %market& organizations. These companies are similar to the ontrol %hierarchy& in that they value stability and control: however, instead of an inward focus they have an e#ternal orientation and they value differentiation over integration. This began largely because of the competitive challenges from overseas that forced American companies to search for a more effective business approach. With their outward focus, ompete %market& organizations are focused on relationships"more specifically, transactions"with suppliers, customers, contractors, unions, legislators, consultants, regulators, etc. Through effective e#ternal relations they feel that they can best achieve success. While ontrol %hierarchy&
operating procedures, and specialized 4ob functions, optimizes stability and control through rules, standard ompete %market& organizations are concerned with
competitiveness and productivity through emphasis on partnerships and positioning. /eneral .lectric, under the leader $ ship of former .O ;ack Welch, is a good e#ample of a ompete %market& organization. -e famously announced that if businesses divisions were not first or second in their markets then, simply, they would be sold. Their corporate culture was %and still largely is& highly competitive where performance results speak louder than process.
COLLA'ORATE $CLAN&
*n the values matri# ollaborate %clan& are similar to ontrol %hierarchy& in that there is ollaborate %clan& emphasize ontrol %hierarchy& and an inward focus with concern for integration. -owever,
ompete %market& organizations. With the success of many ;apanese firms in the late 56<8s and 56=8s, American corporations began to take note of the different way they approached business. >nlike American national culture, which is founded upon individualism, ;apanese firms had a more team$centered approach. This basic under$ standing affected the way that ;apanese companies structured their companies and approached problems Their ollaborate %clan& organizations operated more like families "hence the name"and they valued cohesion, a humane working environment, group
commitment, and loyalty. ompanies were made up of semi?autonomous teams that had the ability to hire and fire their own members and employees were encouraged to participate in determining how things would get done. A good e#ample of a ollaborate %clan& in American business is
all$natural toothpastes, soaps, and other hygiene products. The founder, Tom Toms of 0aine, which produces happell, grew the company to respect
relationships with coworkers, customers, owners, agents, suppliers, the community, and the environment. According to their company statement of beliefs, they aim to provide their employees with )a safe and fulfilling environment and an opportunity to grow and learn.+ Typical of ollaborate %clan& cultures, Toms of 0aine is like an e#tended family with high morale and Tom himself takes on the role of mentor or parental figure.
CREATE $A(HOCRAC%&
*n the values matri# *nstead they are like differentiation. With the advent of the *nformation Age, a new approach developed to deal with the fast$ paced and volatile business environment. (ocial, economic, and technological changes made older corporate attitudes and tactics less efficient. (uccess now was envisioned in terms of innovation and creativity with a future$forward posture. An entrepreneurial spirit reigns where profit lies in finding new opportunities to develop new products, new services, and new relationships"with little e#pectation that these will endure. Adhocracy organizations value fle#ibility, adaptability, and thrive in what would have earlier been viewed as unmanageable chaos. -igh$tech companies like /oogle are prototypical reate %adhocracy&. /oogle develops innovative web tools, taking advantage of entrepreneurial software engineers and cutting$edge processes and technologies. Their ability to @uickly develop new services and capture market share has made them leaders in the marketplace and forced less nimble competition to play catch$up. reate %adhocracy& are similar to ollaborate %clan& in that they emphasize fle#ibility and discretion: however, they do not share the same inward focus. reate %adhocracy& in their e#ternal focus and concern for
SPATIAL IMPLICATIONS
(ince each of these organizational types is distinguished by different attitudes, values, behaviors, and beliefs it is understandable that the same workspaces would not best support their different cultures. A ollaborate %clan& organization, with its emphasis on
teamwork and sociality, needs spaces that foster and reflect this. Aows of high paneled cubes, that might be appropriate in certain ompete %market& companies, would be incompatible with the way a ollaborate %clan& organization works and how it wants to present itself. The diagrams on the following page outline specific work space implications relative to the four organizational culture types
reports that functional teams within the D< corporations that they studied had a
different organizational type than their company =5E of the time. (chein %5666& notes that this is not necessarily dysfunctional, rather it allows the company to perform effectively in different environments based on function, product, market, location, etc. *n order to get a more accurate picture of the company, it is important to understand not only the company organizational type, but the cultures of departments or other important groups as well. The same organizational culture types " ontrol %hierarchy&, compete ontrol reate %adhocracy&, an %market&, collaborate %clan&, create %adhocracy&"apply at both levels. (o, a %hierarchy& company may contain a research group that is a engineering department that is a
that is a ollaborate %clan&. The spatial implications for these different groups may also compete with those of the company, so space planners are faced with greater comple#ity in space solutions.
ompeting 2alues 3ramework and its inclusion of the four organizational culture types
offer a simple means of categorization and understanding: however, it is possible for a company or department to have subdominant elements. This means that an accounting department that is a substantial ompete %market& traits. ontrol %hierarchy& may still have
*n fact, pure
ontrol %hierarchy&,
ompete %market&,
ollaborate %clan&, or
reate
%adhocracy& are e#tremely rare. 0ost of the company cultures that have been diagnosed using ameron and Fuinns Organizational ulture Assessment *nstrument indeed have a strong secondary component. This is also the case at the departmentGgroup level. Their research has additionally shown that it is rare to have companies that share e@ual traits of all four culture types"with no dominant or barely dominant type.
Pi+torial Mo,el
2Collaborate 3Clan45 Culture An open and friendly place to work where people share a lot of themselves, it is like an e#tended family. Ceaders are considered to be mentors or even parental figures. /roup Coyalty and sense of tradition are strong. There is an emphasis on the long$term benefits of human resources development and great importance is given to group ohesion. There is a strong concern for people. The organization places a premium on Teamwork, participation, and consensus 2Create 3"dhocrac%45 Culture A dynamic, entrepreneurial, and creative place to work, *nnovation and risk$taking are embraced by employees and leaders. A commitment to e#perimentation and thinking differently are what unify the Organization, They strive to be on the leading edge. The long$term emphasis is on growth and ac@uiring new resources. (uccess means gaining uni@ue and new products or services. !eing an industry leader is important. *ndividual initiative and freedom are encouraged.
2Control 31ierarch%45 Culture A highly structured and formal place to work, Aules and procedures govern behavior. Ceaders strive to be good coordinators and organizers who are efficiency$minded. 0aintaining a smooth$ running organization is most critical. 3ormal policies are what hold the group together. (tability, performance, and efficient operations are the long$term goals. (uccess means dependable delivery, smooth scheduling, and low cost. 0anagement wants security and predictability.
2Compete 3Mar&et45 Culture A results$driven organization focused on 4ob completion. Heople are competitive and goal$oriented. Ceaders are demanding, hard$driving, and productive. The emphasis on winning unifies the organization. Aeputation and success are common concerns. Cong$term focus is on competitive action and achievement of measurable goals and targets. (uccess means market share and penetration. ompetitive pricing and market leadership are important.
Le-el# o. Culture
5. At evel One ATRIFACTS the organizational culture can be observed in the form of physical ob4ects, technology and other visible forms of behavior like ceremonies and rituals. Though the culture would be visible in various forms, it would be only at the superficial level. 3or e#ample, people may interact with one another but what the underlying feelings are or whether there is understanding among them would re@uire probing. 7. At evel T6o 7" $0# there is greater awareness and internalization of cultural values. Heople in the organization try solutions of a problem in ways which have been tried and tested earlier. *f the group is successful there will be shared perception of that Isuccess, leading to cognitive changes turning perception into values and beliefs. B. evel Three ASSUMPTIONS represents a process of conversion. When the group repeatedly observes that the method that was tried earlier works most of the time, it becomes the Ipreferred solution and gets converted into underlying assumptions or dominant value orientation. The conversion process has both advantages. The advantages are that the dominant value orientation guides
behavior, however at the same time it may influence ob4ective and rational thinking.
(e-elo"ing OC in-ol-e#
1eveloping a strong corporate identity 1evelopment of important values !uilding healthy traditions 1eveloping consistent management practices
0obility of Heople