Running head: organizational culture AND Tqm

How does types of organizational culture impact the implementation of TQM

Ajinkya S Kore (616822)
BUS 503D Foundations of Management
California Baptist University
December 08, 2015

Abstract
The purpose of this paper is to show the potential links between TQM, its implementation
and organization culture, and to highlight the impact of the four types of organization culture on
implementation of TQM and its success. Based on the literature developed by Cameron and
Quinn (1999), it is proposed that organization culture is classified into four different types

organizational culture AND Tqm

depending on the characteristics that they have, and these types are group/clan, adhocracy,
hierarchical and market culture. The study of this research paper is purely based on a review of
the literature. The literature review reveals that the adhocracy and group culture types are the
most supportive cultures for TQM implementation or are in positive association with
implementation of TQM and other bureaucratic cultures such as hierarchical and market cultures
are not supportive for TQM implementation or these cultures are in negative association with
implementation of TQM.
Keywords: Organization culture, Total Quality Management-TQM, Group culture,
Adhocracy culture, Hierarchical culture and Market culture.

organizational culture AND Tqm

Introduction
As an introduction to the study of the impact of organization culture on TQM, it is very
important to present the brief introduction on each of these concepts to know main aspects in the
research that specifically examines this impact. According to multiple authors such as Ahmad
Ghoneim, Mohamed Haffar and Wafi Al-Karaghouli (2013), Total Quality Management (TQM)
is a philosophy, management approach and culture of managing the organization, which
emphasizes mutual co-operation, involving everybody in the organization at each level and
improvement in all aspects of the organization, while Rad (2006) believes that TQM is the
culture of an organization committed to total customer satisfaction through continuous
improvement (p. 607). In todays era of global marketing, many organizations in different parts
of the world have implemented the principles and practices of TQM (Kuo & Kuo, 2010; Zakuan
et al., 2010; Lam, Lee, Ooi, & Lin, 2011). This is due to their recognition of TQM as being a
means to achieve a business performance, competitive advantage and continuous success in
international marketing competition (Lam et al., 2011). However, research studies by many
researchers including Abdolshah & Abdolshah (2011), have indicated a high rate of problems
and failures in the process of implementing TQM.
Recent literature in the field of TQM has expressed that there is an increasing recognition
of the influence of organizational culture on the success or failure of TQM implementations (Zu,
Robbins, & Fredendall, 2010; Gimenez-Espin, Jimenez-Jimenez, & MartnezCosta, 2012
Green, 2012). It is suggested by many research studies that organizational culture is one of the
most important variables in the success or failure of TQM implementation (Kujala & Lillrank,
2004; Metri, 2005; Tata & Prasad, 1998). Organisational culture has also been a major topic of

organizational culture AND Tqm

research, involving many classifications and definitions. Among these, the typology of Cameron
and Quinn is one of the most important (Henri, 2006). Several authors such as Metri (2005),
Gimenez-Espin et al., and Green (2012) relied on the Competing Values Framework proposed
by Quinn (1988) to create what they call a tool for the assessment of organizational culture,
with four types of cultures: clan, adhocracy, market and hierarchy. Many studies have tested the
impact of the four culture types of the competing value framework (CVF), namely group,
adhocracy, hierarchical and market/rational, on the implementation of TQM in order to
determine the most supportive organization culture types for TQM implementation (Dellana &
Hauser, 1999; Gimenez-Espin et al., 2012). The studies of authors namely Hildebrandt et al.,
(1991) and Westbrook (1993) revealed that the concept of organizational culture is the subject of
considerable interest in the literature on quality management and the cultural impacts on quality
management and the mutual relationship between TQM and organizational culture have been
discussed since the beginning of the 1990s.
The aim of this study was to understand precisely how does four types of
organization culture impact the implementation of TQM. To do this, the relevant literature in the
fields of TQM and organizational culture is thoroughly discusses to identify the kind of culture
that can be expected to promote the success of a TQM system. The results of this study suggests
that there is considerable evidence to support the impact that four types of organization culture
can have on implementation of TQM.
Literature Review
Step #1
In todays competitive global economy, Successful organizations are continuously faced
with the need to adopt and employ transformational initiatives and changes (Choi & Ruona,

organizational culture AND Tqm

2011). Total quality management (TQM) is one of these transformational initiatives and one of
the most important evolutions of management practices (Zakuana, Yusof, Laosirihongthong, &
Shaharoun, 2010; Dahlgaard-Park, 2011; Duh, Hsu, & Huang, 2012). Shaharoun (2010) has
described Total quality management (TQM) as a management tool which provides companies a
competitive advantage and allows them to generate higher profits. Organizational culture is one
of the most important variables in the success or failure of TQM implementation. Depending on
several studies of authors such as Meirovich, Galante and Yaniv (2006) it is said that
organization culture and structural factors play very important role in the success of the TQM.
Organizational culture.
Organizational culture is one of the key elements for implementing TQM
practices. Catanzaro, Moore, and Marshall (2010) described that the phenomenon culture exist
at different levels that comprises of both the national culture and organization culture. According
to Cameron & Quinn, (1999) organization culture is the set of norms, beliefs and values shared
by members of the organization. But, the concept of organization culture is very broad and vast
and it can be found at alternate levels such as values, rules and practices. Moreover, members of
an organization are affected by organization culture through influence of behavior and
performance outcomes and the external government of an organization. According to Martin
(2005, p. 148), Organizational culture is a set of commonly held attitudes, values, and beliefs
that guide the behavior of an organizations members. Multiple researchers including Frohman
(1998), O'Relly, Chatman, & Caldwell (1991), Schein (1996) have described that there are many
types of organization culture since this concept first appeared in the literature. To classify types
of cultures and their impact on TQM, it is very beneficial to use the competing values model of
Cameron and Quinn (1999). This model defines a widely accepted typology of organizational

organizational culture AND Tqm

cultures that has been used in many empirical studies. Two dimensions of the 39 performance
indicators developed by Campbell are used to extract the definition of culture in this model. The
first dimension relates to the orientation of the company to stability versus flexibility, according
to the importance given to control and order (stability) or innovation and dynamism to adapt to
environmental changes (flexibility). The second dimension refers to the orientation of the
company, which may be external, when it is primarily concerned about customers, competitors
and the environment, or internal, when the focus is on the people, products and processes of the
organization. These two competing values in combination proposes four types of organization
culture namely group/clan, adhocracy, hierarchical and market/rational that impact the TQM.
Clan culture is based on flexibility and internal focus. In it, the organization acts like a family,
promoting teamwork, commitment and involvement. Adhocratic culture fosters flexibility, but its
orientation is external. Its objectives include creativity, risk taking, individuality and initiative.
The corporations dominated by the adhocracy culture type are characterized by a vibrant,
innovative and flexible tendency. The hierarchical culture is based on stability and control along
with an internal focus and such organizations fail to encourage innovation and creativity among
their employees (Zammuto, Gifford, & Goodman, 2010). Market culture looks for an external
perspective through which to differentiate it from competitors, intended to produce a market
leader, but uses stability and control to achieve its goals of internal and external competitiveness
and productivity. Cameron and Quinn (1999) have stated that the organizations dominated by the
market culture, have a result-driven ethos and consequently, the members of this kind of
organization are less likely to implement TQM.
Step #2
Total quality management.

organizational culture AND Tqm

TQM has been considered as an important mechanism for promoting the smooth running
of companies and attaining a competitive advantage. Multiple researchers including Flynn,
Schroeder, and Sakakibara (1994), have described TQM as s an integrated effort to achieve and
maintain high-quality products based on the maintenance of continuous process improvement
and error prevention at all levels and in all functions of the organization with the aim of reaching
and even exceeding customer expectations. Hackman and Wageman (2005), suggested that the
philosophy was based on assumptions made about four organizational components: quality,
people, organizations as systems and senior management.
Quality.
According to Joel E. Ross (2009), quality is generally defined using different approaches
that are namely product-based, user-based, manufacturing-based and value-based view. In
product-based view, quality is defined as quantifiable and measurable characteristics or
attributes. For e.g. reliability or durability is measurable and an engineer can develop any
product as per these benchmarks. User-based approach to quality is rational approach and it is
defined on the idea that quality is an individual matter, and products that best satisfy their
preferences (i.e. perceived quality) are those with the highest quality. Manufacturing-based view
of quality refers to engineering and manufacturing practices and believes in universal definition
of conformance to requirements. The last view which is value-based defines quality in terms of
costs and prices as well as a number of other attributes.
People.
Miflora M. Gatchalian (1997) has stated that empowerment of people within an
organization is the key to success of TQM and to achieve customer satisfaction using TQM
philosophy, participation of everyone in an organization in the development of shared mission,

organizational culture AND Tqm

vision, and plans and in the willingness for continuous improvement is required. Miflora M.
Gatchalian (1997) also suggested that correct problem identification and rectification leading to
continuous improvement can only be achieved through effective people empowerment.
Organizations as systems.
Carter McNamara (2008) has stated that a system is a collection of parts (or subsystems)
integrated to accomplish an overall goal (a system of people is an organization) and if any one
part of the system is taken out or separated from system then that system changes its nature. This
approach helps managers to look at organization from a broader perspective and encourages
them to work as an integrated system in order to achieve desired goals.
Senior Management.
Hackman and Wageman (2005), have reported that senior management of an organization
is solely responsible to create the strategic atmosphere and organizational environment for Total
Quality Management (TQM) to thrive. People from senior management within an organization
must communicate with their employees the reasons for implementation of TQM and change in
employees area of work after implementation of TQM.
TQM is considered as means to achieve a business performance, competitive advantage
and continuous success in international marketing competition (Lam et al., 2011). However,
many research studies have indicated a high rate of problems and failures in the process of
implementing TQM (Abdolshah & Abdolshah, 2011). Several researchers including Zu, Robbins,
& Fredendall (2010), Green (2012) have described that there is an increasing recognition of the
influence of organizational culture (OC) on the success or failure of TQM implementations.
TQM is a philosophy, management approach and culture of managing the organization, which
emphasizes mutual co-operation, involving everybody in the organization at each level and

organizational culture AND Tqm

improvement in all aspects of the organization. TQM aims at achieving customer satisfaction by
not only producing products and services that fulfill customer needs and requirements, but also
exceeding them through continuous improvements.
Step #3
Although the importance of organizational culture for TQM has been widely suggested in
the literature, this relationship raises some questions. First, Cameron and Quinn (1999) pointed
out that those competing values that could help the organization to implement a TQM system
could be present in each culture: empowerment, teamwork, employee involvement, HR
development, open communication (clan culture); creating new standards, developing products,
continuous improvement, customer orientation, finding creative solutions (adhocracy culture);
error detection, control processes, systematically solving problems, apply quality tools,
measurement (hierarchical culture); measuring consumer preferences, productivity gains,
involving customers and suppliers, increasing competitiveness, creating collaborators (market
culture). These values or elements of each of the four cultures play very vital role in
understanding the impact of organization culture on implementation of TQM. These elements
present in culture show the attitude of that particular organization towards the implementation of
TQM. If elements of any of the culture do not support the implementation of TQM then
ultimately the it can be said that that type of organization culture does not support
implementation of TQM.
Irani, Beskese, and Love (2012), Detert et al. (2010) believed that organizations with clan
or group culture are the most favorable to implementing a TQM program successfully. Many
authors have found that group culture has a positive influence on TQM implementation (Naor et
al., 2008; Zu et al., 2010). Corporations dominated by the hierarchy culture fail to encourage

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10

innovation and creativity among their employees (Zammuto, Gifford, & Goodman, 2010). Thus,
members working in such organizations, are expected to be less likely to apply TQM.
Cameron and Quinn (1999) argued that corporations dominated by the adhocracy culture
type are characterized by a vibrant, innovative and flexible tendency. According to the findings
of many research studies of multiple researcher including Dellana & Hauser (1999), Naor et al.
(2008), Gimenez Espinet al. (2012) suggest that adhocracy culture has positive influence on
TQM implementation. Zammuto et al (2010) stated that the members of the organizations
dominated by market culture are less likely to implement TQM. The findings of many research
studies suggest that market culture has a negative influence on TQM implementation (Dellana &
Hauser, 1999; Gimenez-Espin et al., 2012).
Step #4
From the research of multiple researchers including Naor et al. (2008), Gimenez-Espin et
al. (2012), Zammuto et al (2010), Cameron and Quinn (1999), Irani, Beskese, and Love (2012)
hypothesis can be formulated that each type of organization culture has different effect on total
quality management and its implementation. Which type of organization culture impact the total
quality management in positive way and/or negative way? How is total quality management
affected with change in type or style of organization culture? How does the type of organization
culture impact the implementation of TQM in any organization?
With that literature, the research question is as follows, How does types of organization
culture impact implementation of total quality management?
Discussion
Organizational culture is one of the important aspects for implementing TQM practices.
Few researchers have concentrated their efforts on studying this concept. According to Stock et

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11

al. and Yu (2007), organization culture is defined generically as, the set of norms, beliefs and
values shared by members of the organization. Many research studies have been carried out to
understand the impact of the types of organization culture namely group/clan, adhocracy,
hierarchical and market/rational, on the implementation of Total Quality Management (GimenezEspin et al., 2012). In this paper, I will discuss how four types of organization culture impact the
total quality management implementation in an organization.
According to reviewed literature, it can be said that types of organization culture have
either positive or negative impact on an implementation of TQM. Each of the four types of an
organization culture has different impact.
Claim 1
The first type which is group or clan culture has favorable or positive effect on
implementation of TQM or organizations with clan culture are most favorable to implementing a
TQM program successfully.
Reasons.
Organizations that are dominated by clan or group culture are comfortable with the
change that might take place due to implementation of TQM. Clan culture has factors such as
employee motivation, commitment and customer orientation that play vital role in
implementation of TQM successfully. Accordingly, members in such organizations are expected
to work and behave in manner consistent with TQM practices (Naor et al., 2008).
Evidences.
Prajogo & McDermott (2005) believe that organizations with clan or group culture are
the most favorable to implementing a TQM programme successfully. It is also argued that to
implement TQM successfully, the organizational culture must change and be characterized by its

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12

customer orientation, the support of senior management, employee engagement and variables
that are present in clan/group culture (Naor, Goldstein, Linderman, & Schroeder, 2008). The
clan/group culture has an internal focus that is suitable for total quality management. (Prajogo &
McDermott, 2005). Moreover, organizations dominated by group or clan culture give its
members a voice in the product design and process management, as well as responsibility for
the results (Naor, Goldstein, Linderman, & Schroeder, 2008, p. 676). Furthermore, Neal, West,
and Patterson (2005) have stated in their study that the organizational climate favors training and
motivation, variables that form part of the clan and culture. This will support the success of a
TQM system, so after reviewing arguments stated above, it is evident that organization
dominated by group or clan culture are favorable to implementation of TQM successfully.
Claim 2
According to literature, the second type of organization culture which is adhocracy
culture, is in positive relationship with an implementation of total quality management and I
strongly agree to this statement because of few reasons and evidences that are available to prove
so.
Reasons.
Adhocracy culture has characteristics such as workers training, motivation, anticipation
of customer needs, continuous innovation that has a positive relationship with information
availability and flexibility within the organization. Because of these characteristics adhocracy
culture tends towards facilitating implementation of TQM. Few studies have also suggested that
external orientation of adhocracy culture has a positive relationship with TQM implementation
and success.
Evidences.

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13

Jabnoun & Sedrani, (2005) have argued that customer orientation and continual
improvement are the two variables available in adhocratic culture that have major effect on
implementation of TQM and its success. It is argued that adhocracy promotes continuous
innovation, a highly educated workforce, great autonomy and motivation and availability of
useful information (Lo, 2002). Some studies have indicated that organizations with adhocratic
culture that use quality systems obtain better results (Lagrosen & Lagrosen, 2003). It is argued
by Cameron and Quinn, Zu et al. (2010) that corporations dominated by the adhocracy culture
type are characterized by a vibrant, innovative and flexible tendency. These organizations
stimulate individual initiatives and the utilization of new systems such as TQM which improves
the efficiency of their organization. This will in turn foster individuals Involvement in the
implementation of TQM and increase the probability of TQM success. Moreover, it is suggested
by the findings of many research studies that adhocracy culture has positive influence on TQM
implementation (Naor et al., 2008; GimenezEspinet al., 2012). Therefore, it is proposed that
adhocracy culture is in positive relationship with implementation of TQM and its success.
Claim 3
In available literature it is argued that bureaucratic culture such as hierarchical culture
does not lead to successful implementation of TQM.
Reasons.
The characteristics of clan or adhocracy culture such as workers training, motivation,
customer orientation and continual improvement that result in positive effect on TQM
implementation, will not be present in an organization dominated by hierarchical culture.
Another reason to support this claim is that customer orientation is important for success of TQM
and innovation is key to achieve customer orientation, but this variables are not available in

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14

hierarchical culture. In available literature, it is also suggested that the hierarchical culture
emphasizes the normalization of processes and standardization of products because of this,
organizations dominated by such cultures might prefer implementation of quality programs such
as ISO9000 than implementation of TQM.
Evidences.
It is argued by Mosadegh Rad (2006) found that bureaucratic cultures, in which control is
important, such as the hierarchical and the market culture, were characterized by TQM programs
that had little success. The studies have also shown that hierarchical status does not lead to
successful TQM implementation (Kumar & Sankaran,; Walumbwa & Lawber, 2007) and that
cultures with high bureaucracy do not encourage TQM because of their lack of customer
orientation (Lagrosen & Lagrosen, 2003). Corporations dominated by the hierarchy culture fail
to encourage innovation and creativity among their employees (Zammuto, Gifford, & Goodman,
2010). Thus, members working in such organizations, are expected to be less likely to apply
TQM. . It is also argued by Zammuto et al. (2010) that organizations dominated by the hierarchy
culture do not encourage innovation and creativity. Furthermore, these organizations resist the
implementation of new change initiatives and ignore or minimize environmental influences
(Zammuto et al., 2010). Consequently, the members of this kind of organization are more likely
to have a negative attitude towards organizational change. Thus, it is evident that organizations
dominated by the hierarchy culture does not lead to successful implementation of TQM or such
organizations are in negative association with implementation of TQM.
Claim 4
After reviewing the existing literature, it is reported that another bureaucratic culture that
is market culture is in negative association with implementation of TQM. I agree this argument.

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15

Reasons.
In market culture control and formalization are considered as important elements, so
there will be no innovation and thus customer orientation is unable to achieve. Customer
orientation is an essential element for implementation which is not present in market culture so
with such culture implementation of TQM will not work to give desired results.
Evidences.
In order to support above described claim, some studies have indicated that the market
culture has an orientation towards fixed objectives and the search for the lowest transaction costs
with respect to suppliers, customers and workers, which may adversely affect the successful
implementation of TQM (Aiken, Bacharach, & French, 2008). In literature it is reported by
Cameron and Quinn (1999) that organizations dominated by the market culture, have a resultdriven ethos. The question of morale and personnel development tends to be considered less
important by the leaders who are more single-minded about getting the job done and increasing
profits (Cameron & Quinn; Zammuto et al., 2010). Other studies have shown that customer
orientation and continual improvement, two of the variables present in both clan and adhocratic
cultures, and not present in market culture, are those that have a major effect on TQM success
(Jabnoun & Sedrani, 2005). As a result of this discussion it can be stated that organizations
dominated or run by market culture are in negative association with successful implementation
of TQM and it can also be stated that market culture has adverse effect on implementation of
TQM and its success.
Limitations
There are some shortcomings of this research that lead to avenues for future research.
First, the current study has examined only the available secondary research literature, there was

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no primary research involved in this study to understand the impact of four types of organization
culture on implementation of total quality management-TQM. There might be other potential
outcomes or findings which have not been included or discussed in this study. Second, as this
study was purely based on secondary research literature, there was lack of recent or current
articles related to study. The literature reviewed was taken from articles within past 10 years but
there were only few articles that from previous two years.
Conclusion and Future Research
This study contributes to knowledge of understanding the impact that organization culture
has on implementation of TQM. The findings of this study show that the four types of
organization culture namely: group/clan, adhocracy, hierarchical and market cultures are either
supportive or non-supportive to the implementation of TQM. In other words, it can be stated as
these four cultures are either in positive or in negative association with the implementation of
TQM. Group or clan culture has favorable or positive effect on implementation of TQM or
organizations with clan culture are most favorable to implementing a TQM program successfully
because organizations that are dominated by clan or group culture are comfortable with the
change that might take place due to implementation of TQM. Clan culture has factors such as
employee motivation, commitment and customer orientation that play vital role in
implementation of TQM successfully. From the discussion in this paper it can be concluded that
adhocracy culture has characteristics such as workers training, motivation, anticipation of
customer needs, continuous innovation that has a positive relationship with information
availability and flexibility within the organization. Because of these characteristics adhocracy
culture tends towards facilitating implementation of TQM.

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17

On the other hand, hierarchical and market cultures have been shown to have a negative
relationship with implementation of TQM. Excessive focus on control prevents the requirement
of TQM that employees should be given greater freedom and responsibility, to get involved and
seek continuous improvement and error reduction. This results in negative association of
hierarchical and market cultures with implementation of TQM. (Jabnoun & Sedrani, 2005;
Kumar & Sankaran, 2007; Mosadegh Rad, 2006). The characteristics of clan or adhocracy
culture such as workers training, motivation, customer orientation and continual improvement
that result in positive effect on TQM implementation, will not be present in an organization
dominated by hierarchical culture. In market culture control and formalization are considered as
important elements, so there will be no innovation and thus customer orientation is unable to
achieve. Customer orientation is an essential element for implementation of TQM, which is not
present in market culture so with such culture implementation of TQM will not work to give
desired results.
This research suggests that group/clan and adhocracy cultures are in positive association
with implementation of TQM which leads to future of this research that can be carried out to
understand or know the more associative culture among these two while implementing TQM in
an organization. There is no present research available on the topic that expresses type of
organization culture which is more associative in implementation of TQM or in other words, type
of an organization culture which has more positive impact on implementation of TQM. Thus,
future research can be carried out identify and understand the organization culture that is more
associative to implementation of TQM. Koberg and Hood (1991), have stated that in one
organization different cultures can appear which could explain the behavior of different
employees in better manner. This statement suggests that some organizations do not poses single

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culture, they might run with multiple cultures or a hybrid version comprising some elements
from each of the four organization cultures. This creates an opportunity to go further into this
research and study about implementation of TQM in organizations that are run by either multiple
cultures or by hybrid version of all the organization cultures.
The negative association of hierarchy and market culture with implementation of TQM
also indicates that there is considerable opportunity to undertake further research. The future
study can be undertaken to understand which elements of these bureaucratic cultures that are
hierarchy and market cultures cause negative association with TQM implementation, why those
elements show characteristics that result into negative impact on implementation of TQM. In
these two bureaucratic cultures- hierarchy and market, other potential elements

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19
References

Haffar, M., Al-Karaghouli, W., & Ghoneim, A. (2013). Total Quality Management. 693-706.

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