CASE 1.

2
Rigid Vs. Adaptive Culture – Which One Is Right For Your Business?

There is no wrong or right culture, but your employees need to feel comfortable with
the company culture in order to be happy at work. When they feel like their company’s
culture is a good fit for them, they may be more productive and have better professional
relationships with coworkers. According to Gallup, 51 percent of the American workforce is
not engaged in the company that they work for. The Engagement Institute states that this type
of disengagement may cost companies as much as $550 billion each year.

Meanwhile, approximately 47 percent of people who are looking for a new job choose a
company culture as a primary reason, according to Hays. You may have more control over
the culture in your organization than you might think. CultureIQ states that executive
leadership has been identified as a driving force for company culture in 83 percent of
businesses.

Should your company have a rigid or adaptive culture? There is no right or wrong
option. Both rigid or adaptive culture have their pros and cons. A closer look at each one may
help you define the culture that you want to create.

Zappos is a reputable online retailer that is based in Las Vegas, and it is a perfect
example of how a successful company with an adaptive culture is run. Employees are given
exceptional freedom in the workplace. All 1,500 employees have created their own job titles.
They all feel free to work independently, but they know that their opinions are valued.
Employees report to teams rather than to a specific manager, and they are encouraged to
develop new skills through a badge system. Even in the call center, freedom reigns. Call
center reps are not required to speak with a script or to monitor how much time they spend on
a call. Meanwhile, GE is a perfect example of a company with a rigid culture. It was founded
in 1892, and it is run with strict and traditional managerial practices that have not changed
much from its early days. In many cases, local car dealerships and banks are also run with a
traditional, tight corporate culture. There are clearly defined roles, and workers are expected
to complete responsibilities in a pre-determined way.

Assignments
1. Reviews the case
2. Identify what is the problem from the perspective of organization theory
3. Answer the questions based on theory and support data (journals, books, company profile,
and etc). Support your argument with the theories in chapter 1 of Daft (2018),
Organization Theory and Design.

Questions

1. Which one is right for your business? Rigid or adaptive culture? Take a perspective as
an employer of the organizations.
2. And which one would you choose, if you positioned yourself as an employee of the
organizations.
3. What are the primary differences between an organization designed for efficient
performance and one designed for learning and change? Which type of organization
do you think would be easier to manage? Discuss the pros and cons of this two
approach for today’s organizations