Beatrice Natividad B.

Mendoza October 13, 2016

ID # 132713 LS 142 - X
Paper # 4: Corporate Cultural Frameworks
Deal & Kennedy
In their book “Corporate Cultures: The Rites and Rituals of Corporate Life,” they discussed
how corporate cultures were formed through the interaction of the ff. cultural elements:
History (the core values, shared narrative of the past), Values (what the organization stands
for), Rituals (ceremonies bring members together), Stories (narratives showing members’
values & expectations), Heroic figures (role models praised for embodying organizational
values), and Cultural Network (informal network where information is learned.)
They were also able to identify 2 marketplace factors that influenced cultural patterns and
practices, which are: the degree of risk in an organization’s activities and the speed at which
they can determine the success of their strategies (the feedback speed.) By observing
these, they came up with 4 distinct types of corporate cultures, namely:
oTough-guy & Macho – predominated by individualists who engage in exciting and high-
risk activities to succeed & receive feedback relatively quickly; also referred to as an “all-
or-nothing” culture focusing heavily on the present rather than on the future. Teamwork is
not highly valued in this environment and turnover is high.
oWork Hard/Play Hard – those in this type of culture tend to take few risks and receive
feedback about their performance almost immediately. High levels of energy are
necessary in this environment to get ahead; organizations that exhibit this culture
encourage excellence and teamwork by initiating competitions that drive members and
teams to perform. The main source of stress in these cultures is the volume and quantity
of work done, and not the uncertainty involved in the tasks.
oBet-Your-Company – members of this kind of culture engage in high risk activities but
wait for a long period of time to know the results of their actions. Usually, companies that
practice this kind of culture are those part of large, capital-intensive industries.
Companies with this culture require their employees and staff to develop a long-term
perspective that will help them effectively and carefully plan and prepare to avoid any
losses and failures in the future.
oProcess – Companies that exhibit this culture do not engage in risky activities and receive
feedback regarding their performance after a relatively long time. This culture cultivates
an environment of security and low stress. Furthermore, the individual actions of the
organization’s members have little impact on the organization’s overall success.
Employees put less emphasis on the actual outcome, and more on the process and
details involved in accomplishing their tasks.

Charles Handy
According to his model, there are 4 major types of corporate culture:
1. Power Culture: When this culture is being practiced, an important individual/group of
individuals usually holds most of the power & influence in the organization. They enjoy
privileges because they are considered as the major decision-makers; which could lead
to rushed decisions that could harm the company. They delegate tasks to their
subordinates, who are not allowed to voice out their opinions and have no choice but to
obey their instructions.
2. Task Culture: Organizations who encourage the formation of this culture create teams of
people driven to perform and accomplish tasks. Teamwork prevails in this culture
because members usually share common interests and goals; innovation is also
fostered and all members are expected to contribute equally
3. Person Culture: Employees of organizations with this culture believe they are more
important than the company; individuals prioritize their self-interests over the
organization’s welfare. Members of such organizations are only loyal because of the
compensation they receive for their work and not because of the company itself.
 4. Role Culture: Each individual in this culture is given tasks according to their
specialization, interests, and skills to optimize the quality of output received by the
company. Employees usually feel empowered and motivated to perform well in these
cultures because they are held accountable for their work.

Sonnenfeld
Sonnenfeld (1988) categorizes corporate culture into 4 types:
1. The Academy – employees of this type of culture enjoy fluidity; they are exposed to a
diverse set of jobs that allow them to move around the organization. Members are
usually loyal since the company makes many opportunities for growth and
development available to them
2. The Club – organizations with this culture are particular about how their employees fit
in their company’s structure. Seniority is highly valued, and employees usually start
at the bottom and have to work their way to the top and be promoted.
3. The Baseball Team – this culture is present in high-risk, fast-paced organizations
with many talented members; they experience high turnover, because their
employees are “free agents” that are highly demanded and readily leave the
organization as soon as better opportunities come along.
4. The Fortress – organizations that have this kind of culture usually undergo
reorganization and lay off employees because they are primarily concerned with the
business’s survival in the industry.

(1) Fast-moving consumer goods

Deal & Kennedy: Work Hard/Play Hard – Employees of sales-oriented companies such as
those in the fast-moving consumer goods industry experience relatively low levels of risk
because their individual tasks have little impact on the success of the mother organization.
Furthermore, feedback is available immediately and internal events and activities initiated by
the organization motivate and inspire employees to product quality output and contribute to
the company’s survival.
Handy: Task Culture – Companies from this industry encourage and recognize innovative
and creative people who contribute to the value of their goods and services; furthermore,
they also train their members to work in diverse teams that hone their skills across numerous
fields and drive the organization forward
Sonnenfeld: Fortress Culture – In companies that sell fast-moving consumer goods,
emphasis is placed on being able to sell as many products as possible and meeting quotas
to avoid losses, which is challenging given the fast-paced and competitive nature of the
environment in this industry, Financial losses, in turn, make it impossible or difficult for
employers and the organization to retain their employees, resulting to high turnover.

(2) School (e.g. JGSOM)

Deal & Kennedy: Process – Employees of a school experience low stress levels because
their jobs are routine for the most part and involve little risk. Teachers and staff will also only
realize the impact of their work later on in the future (e.g. when their students have grown)
Handy: Role Culture – Professors and staff members are given work that is aligned with their
field of expertise. Schools actively look for experts in numerous arts and sciences to instruct
and facilitate classes that are in line with what they are good at in order to maximize the
quality of the experience offered to clients and students.
Sonnenfeld: The Academy – Professors and staffs in schools are able to learn much from
the students and classes that they teach; many teachers feel loyal to their schools because
of the fulfilling learning experiences the institutions provide

(3) Advertising Agency

Deal & Kennedy: Tough Guy & Macho – Those who work in the field of advertising engage
in high-risk activities because there are never any guarantees of success when catering to
an unpredictable market with rapidly changing preferences. Feedback is immediately
received by advertising agencies in the form of sales and other measures. Furthermore,
teamwork is not prevalent in these environments as agents are often focused and concerned
only with their projects and their success.
Handy: Person Culture – Advertising agents rarely develop loyalty to the; most only stay
because of the benefits provided by the organization; they often only look out for themselves
and seldom work in teams bound together by a common goal (aside from profit and personal
success.) Advertising agents often even switch to the side of a company’s competitor if they
are no longer satisfied with the previous company’s compensation.
Sonnenfeld: Baseball Team – The best advertising agents are viewed by companies and
employers as assets that they need to recruit before their competitors have the opportunity
to. Because advertising agents are highly demanded by various companies across different
industries, loyalty to the company is rarely enough to motivate them to stay, so organizations
spend and exert much effort to retain them through benefits and compensation packages.
 References

https://www.mindtools.com/pages/article/newSTR_86.htm
http://changingminds.org/explanations/culture/deal_kennedy_culture.htm
http://www.open.edu/openlearn/money-management/management/leadership-and-
management/management-perspective-and-practice/content-section-3.5.1
http://www.managementstudyguide.com/charles-handy-model.htm
http://managementhelp.org/organizations/culture.htm
http://faculty.mu.edu.sa/public/uploads/1360855956.3636organizational%20cult135.pdf