Organizational Culture-Meaning

Organizational culture is the collective behaviour of people who form part of

a firm and the senses they attach to their actions. It entails the values,
visions, norms, working language, systems, symbols, beliefs, and habits. It
embodies a firm's values, traditions, and interactions.

Types of Organizational Culture

The types of organizational culture can be better known with the help of the
explanation below.

There are many ways to classify organizational culture, but for our goals,
we'll consider four main types: Clan Culture, Adhocracy Culture, Market
Culture, and Hierarchy Culture. These were created in a framework by
Cameron and Quinn, who referred to it as the Competing Values
Framework.

Clan Culture

The clan culture resembles a vast family where chiefs are seen as mentors
or parent figures. It is marked by a warm environment stressing teamwork,
participation, and consensus. In a clan culture, the core parts stem from
shared values, trust, and joint goals.

o Shared Values: Everyone in the firm shares equal values and beliefs.
This shared mind-set eases teamwork and cooperation.
o Trust: Clan culture fosters a climate of trust. Workers feel safe to
express ideas, take risks, and make errors without fear of penalty.
o Common Goals: Clan cultures work towards shared goals. The focus
isn't on personal triumph but on what the team can achieve jointly.

Characteristics of Clan Culture

The traits of clan culture can be better known from the points below.

o Collaborative: Everyone unites and works jointly.

o Empowerment: Workers are encouraged to be freed.
o Open Communication: Ideas and thoughts are shared freely.
o Flexibility: There is room for error and creativity.

Example: At Google, workers often work in teams and are inspired to

brainstorm and problem-solve. This fosters a sense of harmony and shared
purpose.

Adhocracy Culture
An adhocracy culture is vibrant, entrepreneurial, and creative. This culture
is about taking risks, embracing innovation, and being on the leading edge
of new knowledge and practices. In an adhocracy culture, the key parts
revolve around creativity, flexibility, and risk-taking.

o Creativity: In this culture, creative thinking is not only encouraged

but expected. Workers are given the freedom to think outside the box
and come up with innovative solutions.
o Flexibility: Adhocracy cultures are naturally flexible, adapting quickly
to changes and disruptions in the environment.
o Risk-Taking: This culture is all about taking figured risks. Mistakes
aren't feared but are seen as options for learning and progress.

Characteristics of Adhocracy Culture

The features of adhocracy culture can be better learnt with the help of the
points mentioned below.

o Experimentation: Testing new ideas is enabled.

o Risk-Taking: There is high patience for daring offers.
o Agility: Quick to respond and adapt to changes in the marketplace.
o Entrepreneurial: Fosters innovation and enables workers to think
outside the box.

Example: Tesla's innovative approach to electric cars and energy solutions is

a testament to the adhocracy culture that values creativity and risk-taking.

Market Culture

The market culture is a results-based firm that stresses getting the job
done. Workers are driven by contest, and their goals are based on the
market, clients, and profitability. The market culture stresses competition,
results, and client focus.

o Competition: A market culture thrives on the contest. It's all about

beating rivals and dominating the market.
o Results: Market cultures are highly results-oriented. Performance
metrics and goal triumph are prioritized.
o Customer Focus: The needs and preferences of customers are
paramount in a market culture. Every decision, from product growth
to service delivery, revolves around the client.

Characteristics of Market Culture

The elements of market culture can be better understood with the help of
the points noted below.

o Competition: The focus is on winning and gaining market share.

o Results-Oriented: Success is gauged by the triumph of goals.
 o Customer Focus: All actions are driven by client needs and
preferences.
o Stability and Control: There are well-defined processes and forms.

Example: Amazon's "customer obsession" is well-known, and it has always

prioritized customer satisfaction above all else, a core feature of its market
culture.

Hierarchy Culture

The hierarchy culture is a structured and formal culture where systems

decide what people do. This type of culture emphasizes efficiency, stability,
and doing things right. The key parts of a hierarchy culture are structure,
stability, and control.

o Structure: Hierarchy cultures have clear, well-defined forms. Each

person knows their role, duties, and where they stand in the firm.
o Stability: These cultures value stability and predictability. There needs
to be more risk-taking and more focus on keeping the status quo.
o Control: There are clear lines of authority in a hierarchy culture.
Findings are often made at the top and trickle down.

Characteristics of Hierarchy Culture

The characteristics of the hierarchy culture can be better understood with

the help of the points noted below.

o Rules and Policies: Clear policies govern actions.

o Efficiency: Focus on even, reliable output.
o Stability: Stresses a predictable environment.
o Control: There are clear lines of decision-making power.

Example: Government institutions often exhibit a hierarchical culture, with

strict policies and protocols, clear lines of authority, and a focus on stability
and order.

Some More Organizational Cultures

Although under organizational culture, the above-stated four units are the
ones which we majorly study, there are several other types of organizational
culture as well, which have been examined below.

Collaborative culture

In a collaborative culture, workers are roused to share ideas and work

together to solve issues. This type of culture can be very useful in fostering
innovation and creativity. However, it can also be more hard to manage, as
it requires a high level of trust and alliance among workers.
Here are some of the features of a collaborative culture.

o Workers are encouraged to share ideas and work together to solve

issues.
o There is a strong focus on teamwork and union.
o There is a culture of trust and respect.
o There is a focus on innovation and creation.

Fast-paced culture

In a fast-paced culture, workers are hoped to work quickly and efficiently.

This type of culture can be very choosy, but it can also be very rewarding for
workers who thrive on challenges.

Here are some of the elements of a fast-paced culture.

o Workers are expected to work quickly and efficiently.

o There is a strong focus on results.
o There is a culture of urgency and excitement.
o There is a focus on creation and creativity.

Traditional culture

In a traditional culture, there is a strong focus on hierarchy and order.

Workers are hoped to follow set policies and respect their leaders. This type
of culture can be very stable and predictable, but it can also be resistant to
change.

Here are some of the features of a traditional culture.

o There is a strong focus on order and order.

o Workers are expected to follow set policies.
o There is a culture of respect for authority.
o There is a focus on peace and predictability.

Innovative culture

In an innovative culture, workers are inspired to think outside the box and
come up with new ideas. This type of culture can be very exciting and
exciting, but it can also be chaotic and unreliable.

Here are some of the features of an innovative culture.

o Employees are inspired to think outside the box and to come up with
new ideas.
o There is a culture of risk-taking and investigation.
o There is a focus on creation and creativity.
o There is patience for ambiguity and delay.
Components of Organizational Culture
Organizational culture is made up of several other parts.

o Values: Values are the beliefs that a firm holds dear. They are the
basis of the firm's culture, and they guide the way that employees
behave.
o Beliefs: Beliefs are the beliefs that a firm makes about the world. They
are often assumed, but they have a powerful influence on the way that
employees think and act.
o Norms: Norms are the unspoken rules that govern how people behave
in a firm. They tell workers what is hoped of them and what is not.
o Symbols: Symbols are the things that represent the firm's culture.
They can be anything from the firm logo to the way that workers
dress.
o Language: Language is the way that people express themselves in a
firm. It can be used to support the firm's culture or to doubt it.

Elements of Organizational Culture

The elements of organizational culture are the things that make up the
culture and that help to define it. Some of the most vital factors of
organizational culture include the following.

o Leadership: The leadership of a firm has a deep impact on its culture.

The values, beliefs, and norms that the leaders of a firm match will be
recalled in the culture of the firm.
o Employees: The workers of a firm are the ones who live and breathe
the culture. Their attitudes, behaviours, and trades with each other all
donate to the culture of the firm.
o Structure: The structure of a firm can also affect its culture. A
centralized system with a lot of rules and laws will create a diverse
culture than a decentralized structure with a lot of flexibility.
o Policies and procedures: The policies and practices of a firm can also
affect its culture. Clear and concise policies and procedures can help
to create a culture of accountability and duty.
o Rewards and recognition: The rewards and recognition that a firm
provides can also affect its culture. A culture that rewards innovation
and creativity will be different from a culture that rewards obedience
and unity.

Characteristics of Organizational Culture

The aspects of organizational culture are the things that make it unique.
Some of the most crucial aspects of organizational culture include the
following.
o Strength: The strength of a firm's culture is defined by how deeply it is
rooted in the firm. A strong culture is one that is shared by all
workers, and that is reinforced by the firm's leadership, policies, and
procedures.
o Openness: The openness of a firm's culture is defined by how willing it
is to adopt change. An open culture is one which is open to taking
risks in the industry in which it works and takes decisions.
o Adaptability: The adaptability of a firm's culture is defined by how well
it is able to change in response to the environment. An adaptable
culture is one that is able to quickly adapt to new challenges and
options.