There are many types of organizational culture. Some
cultures are fun-loving (Zappos) while others are more staid and rule-bound (Bank of America). Some cultures are caring (Patagonia), while others are cold and impersonal (Best Buy). Show
Organizational culture arises from the underlying assumptions, values and beliefs that determine how people behave. Culture can be described as the environment or atmosphere, but it’s more than that. You might think of it as an organization’s personality. Culture drives the organization, and if it is not aligned with the business strategies, it will thwart your organization’s effectiveness. Peter Drucker, the founding father of modern business, is often quoted as having said, “Culture eats strategy for breakfast.” Quinn & Rohrbaugh created the
Competing Values Framework based on their research (1983), which showed two key variables that form four basic types of organizational culture. These two variables show 4 types of organizational culture, depicted on the diagram and described below. Types of Organizational CultureBureaucratic Goal: Predictability Community Goal: Synergy Competitive Goal: Winning Entrepreneurial Goal: Innovation The Shape of Organizational CultureJust as each individual’s personality is unique, so is each organization’s culture. Rarely does an organization’s culture lie entirely in one quadrant. For example, this shape would be typical of a tech startup. Free-wheeling, fun-loving, hard-working, creative, and innovative. Lots of mistakes, lots of learning. A strong sense of camaraderie. Think of Apple in its early days. Over time, as that company matures, the shape of the organizational culture is likely to change. It might start to look more like the diagram below. Still outward focused, but less camaraderie, more focus on individual performance, and less tolerance for mistakes. However, it might take a different shape, depending on several unpredictable factors such as the values and beliefs of new leaders, effects of disruptive technologies, and changes in regulations or the economy. The older and larger the organization is, the more set its culture becomes. The Best Type of Organizational CultureThere is no one best culture. The best shape for your culture depends on your business and its goals. What’s important is that your culture and business strategies are aligned. Monitoring your organization’s culture is as important as monitoring profits. If at some point you find your culture and business strategies are no longer aligned, you will need to think about culture change. When considering change, take a look at the opposite type of culture for clues on what’s needed, instead of dismissing the opposite (ex. collaborative is better than competitive). See my article Polarities Hold the Key to a Healthy Organizational Culture for more information. Also keep in mind that most change efforts fail. For tips to ensure your change effort works, read: Why Most Change Efforts Fail and 7 Guidelines to Ensure Yours Succeeds and 3 Approaches to Culture Change: What Works. Photo Credit: SeapointCenter | Four Types of Organizational CultureWhat are 4 types of organizational culture?Four types of organizational culture. Adhocracy culture – the dynamic, entrepreneurial Create Culture.. Clan culture – the people-oriented, friendly Collaborate Culture.. Hierarchy culture – the process-oriented, structured Control Culture.. Market culture – the results-oriented, competitive Compete Culture.. What is organizational culture and examples?The organizational culture definition relates to the structure of an organization such as a company or non-profit and the values, sociology, and psychology of that organization. Some examples of organizational culture include philosophy, values, expectations, and experiences.
What are the different types of Organisational culture?Four Types of Organizational Culture. Clan Culture.. Hierarchical Culture.. Market Culture.. Adhocracy Culture.. Viability.. Relationships.. Performance.. Evolution.. What are the four types of organizational culture quizlet?There are four main types of organizational cultures: clan, adhocracy, market, and hierarchy. A clan culture has an internal focus and encourages collaboration among employees.
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