The 4 types of organizational cultures in an organization.

 1.    The 4 types of organizational cultures in an organization.

The collections of values, expectations and practices that guide and inform the actions of all team members of the company is the organizational culture. In other words, it is the collection of traits that make the company what it is. A dysfunctional organizational culture would result in employees of the company having bad qualities that hinder even a successful company and as result it can be seen why a good organizational culture id important to a company (Wong, 2020). The organizational culture of an organization influences the company’s ability to hire new employees, to retain its current employees and to increase the employee engagement. The employees that are newly recruited and the employees that will remain in the organization are directly influenced by the organization culture of the organization (Heinz, 2022).


Figure 1: Types of organizational culture. Source: (Heinz, 2022).


1.1 Clan culture           

A clan culture is a culture where it is people focused. In other words, in such culture, the company feels like a family as it focuses on the internal factors of the organization. In this type of environment, every employee of the organization is highly valued and two-way communication in the organization is highly evident. Clan culture is culture often associated with the horizontal structured organizations and is also encourages mentorship opportunities for its employees which means there is a mentor or coach type relationship with the manager and the employees. This type of culture is highly flexible in nature and as a result employees embrace changes and adapt to them better. Organizations with a clan culture has a high employee engagement as employees and the reason for is due to every employee’s input is appreciated by the management of the organization. Therefore, there can be high motivation from employees is such type of organizations. Some drawbacks in this type of culture are, due to management listening to every employee’s opinion regarding a situation, it takes time to make decisions. Another reason in the lack of direction in the organization. As everyone is involved in a change or when decision is made, there is no one person to lead the organization (Heinz, 2022).


1.2 Adhocracy culture

Adhocracy cultures are deeply rooted in innovation and adoptability. This type of culture is creation oriented and therefore highly values employee creativity and innovations from its employees. Organizations with this culture strives to find the next big thing and want to be the best in their respective industry and therefore, this type of culture can be seen in companies that are on the cutting edge in their industries. One main advantage for this type of culture for an organization is that employees stay motivated more as their contributions are recognized and they are trying to create new innovative ideas which is encouraged to do by the organization. 

The drawbacks of this culture are, there is risk involved in it. It can be due to employees having the freedom to be innovative, and as a result they are not monitored regularly by the management and not all employee ideas will result in success. Another disadvantage is that competition between employees will be created which will result in high level of conflicts between individuals within the organization. (Heinz, 2022). 


1.3 Market culture

This is a culture that focuses more on the profitability of the organization, and everything is evaluated with the bottom line in mind. In a market culture, every individual or each position has a goal or target and this type of organization is result oriented when making decision and focus more on the external success. There is a clear gap between the employees of the organization and the management and the leadership of the organization. These types of organizations are profitable and successful and due to the roles of every employee being clearly defined, there won’t be any confusion regarding each individual’s objective in the organization. Due to there being a clear chain of command, decision making is quick in this organization culture. The drawback for this culture is that this can be a very stressful environment for the employees of the organization, and this can lead to employees being demotivated. Due to organization always focusing on profits, management is always focused on numbers rather than other factors of the organization (Heinz, 2022). Market culture is one of the most cultures that be seen in Sri Lanka, especially in private sector companies with high level competition in the market such as the distribution industry etc. 


1.4 Hierarchical culture

In a hierarchical culture traditions and culture is important. In this type of organization there is a clear separation between the employee of the organization and the management as there is a clear chain of command and multiple management tiers in the organization. This culture values the structure and the efficiency of the organization. This type of organization is risk averse as they have a set way of doing things in the organization. Disadvantages that can be seen from this type of culture are, their will be no new innovations and creativity from the employees of the organization and employee feedback will be minimum due to organization not focusing on the employees much (Heinz, 2022). This type of traditional culture is apparent in banks such as BOC and other government institutions in Sri Lanka.          


References

Heinz, K., 2022. Builtin Beta. [Online] 
Available at: https://builtin.com/company-culture/types-of-organizational-culture
[Accessed 21 04 2022].

Wong, K., 2020. Achievers. [Online] 
Available at: https://www.achievers.com/blog/organizational-culture-definition/
[Accessed 21 04 2022].

 

 

 

Comments

  1. Jaliya RajaguruMay 4, 2022 at 9:22 PM

    Organisational culture affects affects the business and its employees. When there is a rich culture employee satisfaction and motivation will be very high and it will increase the organisation performance.

    ReplyDelete
  2. Dilini MBAMay 5, 2022 at 6:59 AM

    As discussed, organisational culture is very important in shaping employees and their attitudes. HRM plays a major role in managing the culture in an organisation. Aligning all employees to the culture will help in achieving organisational success. Good article

    ReplyDelete
  3. Kawshi M. Perera ♥️May 6, 2022 at 8:20 AM

    The ability of a company to acquire new employees, retain existing employees, and boost employee engagement is influenced by its organizational culture. The organization's culture has a direct impact on both newly hired personnel and those who will stay. Good discussion !!

    ReplyDelete
  4. Lakshitha MBA 2022 FEBMay 7, 2022 at 9:11 AM

    Employees and their attitudes are shaped by organizational culture, as previously stated. HRM plays a critical role in managing an organization's culture. It will be easier to achieve organizational success if all personnel are aligned with the culture. Excellent article.

    ReplyDelete
  5. Amjad AboobakarMay 7, 2022 at 9:28 AM

    Organizational culture is vital, the organizational culture will reflect in the employees which will be seen in the productivity. Basically the company culture can both positively and negatively impact an organization.

    ReplyDelete

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