Organizational

culture
 ● Organizational culture is defined as “the set of key values,
assumptions, understandings, and norms that is shared by
members of an organization and taught to new members as
correct”
Organizational ● Organizational culture has been associated with job satisfaction
culture and employee retention.

● Different types of culture have a different effect on performance.

● Scholars have established abundant links between organizational

culture and organizational performance.

https://www.strategy-business.com/feature/10-Principles-of-Organizational-Culture?gko=1f9d7
 The key to using culture to improve
Organizational
culture performance lies in matching culture or
attributes to organizational goals.

https://www.youtube.com/watch?v=7g-BLzjEbXU
 ● Robert Quinn and John Rohrbaugh (1983) reviewed the results of many
studies on this topic and determined that two major dimensions could
account for such a broad range.

● Their Competing Values Framework combines these two dimensions,

creating a 2x2 matrix with four clusters.

THE
COMPETING
VALUES
FRAMEWORK
 ●First dimension: values of flexibility, discretion, and dynamism at
one end of the scale with stability, order, and control on the other.

● Some organizations emphasize adaptation, change, and organic

processes (like most start-up companies) while others are effective in
THE
emphasizing stable, predictable, and mechanistic processes.
COMPETING
VALUES ●Second dimension: Marked by internal orientation, integration,
and unity at one end of the scale with external orientation,
FRAMEWORK differentiation, and rivalry on the other.

● Some organizations are effective through focusing on themselves and

their internal processes. Others excel by focusing on the market or
competition
 CLAN ADHOCRACY
THE CULTURE CULTURE
COMPETING collaborate create

VALUES
FRAMEWORK
HIERARCHY
MARKET
CULTUR
CULTURE
control
E
compete
 ● These quadrants represent their basic assumptions, beliefs, and

THE values—the stuff of culture.

COMPETING ● None of the quadrants—Collaborate (clan), Create (adhocracy),

VALUES Control (hierarchy), and Compete (market)— is inherently better

FRAMEWORK than another just as no culture is necessarily better than another.

● Some cultures might be more appropriate in certain contexts

than others. The key to using culture to improve performance lies
in matching culture or attributes to organizational goals.
 “Collaborate (Clan)” Culture
● An open and friendly place to work where people share a lot of themselves.

● It is like an extended family.

● Leaders are considered to be mentors or even parental figures.

CLAN ● Group loyalty and sense of tradition are strong.

CULTURE ● There is an emphasis on the long-term benefits of human resources
development and great importance is given to group cohesion.

● There is a strong concern for people

● The organization places a premium on teamwork, participation, and

consensus
 “Create (Adhocracy)” Culture
● A dynamic, entrepreneurial, and creative place to work.

● Innovation and risk-taking are embraced by employees and leaders.

● A commitment to experimentation and thinking differently are what

unify the organization.
ADHOCRACY
CULTURE ● They strive to be on the leading edge.

● The long-term emphasis is on growth and acquiring new resources.

● Success means gaining unique and new products or services.

● Being an industry leader is important.

● Individual initiative and freedom are encouraged.

 “Control (Hierarchy)” Culture
● A highly structured and formal place to work.

● Rules and procedures govern behavior.

● Leaders strive to be good coordinators and organizers who are efficiency-

HIERARCHY minded.

CULTURE ● Maintaining a smooth-running organization is most critical.

● Formal policies are what hold the group together.

● Stability, performance, and efficient operations are the long-term goals.

● Success means dependable delivery, smooth scheduling, and low cost.

● Management wants security and predictablity

 “Compete (Market)” Culture
● A results-driven organization focused on job competition.

● People are competitive and goal-oriented.

● Leaders are demanding, hard-driving, and productive.

MARKET ● The emphasis on winning unifies the organization.

CULTURE ● Reputation and success are common concerns.

● Long-term focus is on competitive action and achievement of

measurable goals and targets.

● Sucess means market share and penetration.

● Competitive pricing and market leadership are important

 ● Each organization and each individual must address the inherent
tension between two critical dimensions of organizational
Culture
dynamics:
Alignment
Framework ● Attitude toward people, from independence to interdependence

● Attitude toward change, from flexibility to stability.

 ● An organizational culture tends to emerge over time, shaped by
the organization's leadership and by actions and values perceived
Creating and to have contributed to earlier successes.
Managing
● Founders typically have a significant impact on an organization's
Organizationa
early culture. Over time, behavioral norms develop that are
l Culture
consistent with the organization's values.
 ● Three broad concepts help identify the traits specific to a culture:

● Social culture. This refers to group members' roles and

responsibilities.

● Material culture. This involves examining everything that people

Sustaining a in a group make or achieve and the ways people work with and
culture support one another in exchanging required goods and services.

● Ideological culture. This is tied to a group's values, beliefs and

ideals—the things people view as fundamental. It includes the
emotional and intellectual guidelines that govern people's daily
existence and interactions.
 ● HR should take the following steps to manage their organization's culture:

● Identify common artifacts or traits, including those from the standpoint of an

organization's social, material and ideological culture.

● Convene groups of employees—representatives from all levels, functions and

locations of the organization—to assess the validity, significance and currency
Sustaining a of key artifacts.

culture ● Subject those traits to a rigorous assessment of their underlying shared

assumptions, values and beliefs.

● Summarize findings and share them with all participants to solicit additional
insights.

● Create a culture management action plan. The plan should enhance traits that
support corporate growth or organizational effectiveness and correct traits
that might hinder a company's advancement.
 ● Costco: https://vimeo.com/134897885

● Apple, Meta, Amazon: https://www.cnbc.com/2022/03/31/apple-

meta-and-amazon-drop-off-comparablys-annual-best-company-
Examples cultures-list.html

● 10 top companies: https://www.cnbc.com/2022/03/29/10-

companies-with-the-best-workplace-cultures.html