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Assignment On

Organization Behavior
Topic: Organizational Culture

Prepared for
Ms. Fahima Mehjabeen ecturer !epartment of Business "dministration #tamford $niversit% Bangladesh

Prepared B%

Mithun Cha&rabort% '!: ()(*+(),

#ubmission date: -(.**.-(*-

Organizational Culture
Through decades of empirical research, scholars have established abundant links between organizational culture and organizational performance. While previously businesses were either unaware of cultures importance or believed it too difficult to manage, today they recognize that it can be used for competitive advantage. This is something that Apple omputer gets. !y leveraging their culture of innovation toward product as well as internal processes, they have been able to survive " despite incredible competition " as well as venture into new and profitable markets. !ut in order to use culture strategically, a company first needs to understand its culture. And theres the rub. ulture is a comple# issue that essentially includes all of a groups shared values, attitudes, beliefs, assump$ tions, artifacts, and behaviors.


The first dimension places the values of fle#ibility, discretion, and dynamism at one end of the scale with stability, order, and control on the other. This means that some organizations emphasize adaptation, change, and organic processes %like most start$up companies& while others are effective in emphasizing stable, predictable, and mechanistic processes %like 'A(A, itigroup, and most universities&. The second value dimension is marked by internal orientation, integration, and unity at one end of the scale with e#ternal orientation, differentiation, and rivalry on the other. (ome organizations are effective through focusing on themselves and their internal processes")*f we improve our efficiency and do things right, we will be successful in the marketplace.+ Others e#cel by focusing on the market or competition ")Our rivals have weak customer service, so this is where we will differentiate ourselves.

Four Organizational Culture T!"e#

Acknowledging that organizational culture is an important aspect for space planners, this paper provides an overview of four organizational culture types, %market&, ollaborate %clan&, and ontrol %hierarchy&, ompete reate %adhocracy&. This typology reflects the range of

organizational characteristics across two dimensions that were found critical to organizational effectiveness. The spatial implications for each type are presented so that workspace planners

might be able to interpret the results of an organizational culture assessment in their process of designing environments that support the way companies work and represent themselves


Clan 'nternal Force

0/ternal force



#tabilit% Cultural Model

-ierarchical organizations share similarities with the stereotypical large, bureaucratic corporation. As in the values matri#, they are defined by stability and control as well as internal focus and integration. They value standardization, control, and a well$defined structure for authority and decision making. .ffective leaders in hierarchical cultures are those that can organize, coordinate, and monitor people and processes. /ood e#amples of companies with hierarchical cultures are 0c1onalds %think standardization and efficiency& and government agencies like the 1epartment of 0otor 2ehicles %think rules and bureaucracy&. As well, having many layers of management"

like 3ord 0otor

ompany with their seventeen levels"is typical of a hierarchical

organizational structure.

While most ma4or American companies throughout the 56th and much of the 78th centuries believed a hierarchical organization was most effective, the late 5698s gave rise to another popular approach" ompete %market& organizations. These companies are similar to the ontrol %hierarchy& in that they value stability and control: however, instead of an inward focus they have an e#ternal orientation and they value differentiation over integration. This began largely because of the competitive challenges from overseas that forced American companies to search for a more effective business approach. With their outward focus, ompete %market& organizations are focused on relationships"more specifically, transactions"with suppliers, customers, contractors, unions, legislators, consultants, regulators, etc. Through effective e#ternal relations they feel that they can best achieve success. While ontrol %hierarchy&
operating procedures, and specialized 4ob functions, optimizes stability and control through rules, standard ompete %market& organizations are concerned with

competitiveness and productivity through emphasis on partnerships and positioning. /eneral .lectric, under the leader $ ship of former .O ;ack Welch, is a good e#ample of a ompete %market& organization. -e famously announced that if businesses divisions were not first or second in their markets then, simply, they would be sold. Their corporate culture was %and still largely is& highly competitive where performance results speak louder than process.

*n the values matri# ollaborate %clan& are similar to ontrol %hierarchy& in that there is ollaborate %clan& emphasize ontrol %hierarchy& and an inward focus with concern for integration. -owever,

fle#ibility and discretion rather than the stability and control of

ompete %market& organizations. With the success of many ;apanese firms in the late 56<8s and 56=8s, American corporations began to take note of the different way they approached business. >nlike American national culture, which is founded upon individualism, ;apanese firms had a more team$centered approach. This basic under$ standing affected the way that ;apanese companies structured their companies and approached problems Their ollaborate %clan& organizations operated more like families "hence the name"and they valued cohesion, a humane working environment, group

commitment, and loyalty. ompanies were made up of semi?autonomous teams that had the ability to hire and fire their own members and employees were encouraged to participate in determining how things would get done. A good e#ample of a ollaborate %clan& in American business is
all$natural toothpastes, soaps, and other hygiene products. The founder, Tom Toms of 0aine, which produces happell, grew the company to respect

relationships with coworkers, customers, owners, agents, suppliers, the community, and the environment. According to their company statement of beliefs, they aim to provide their employees with )a safe and fulfilling environment and an opportunity to grow and learn.+ Typical of ollaborate %clan& cultures, Toms of 0aine is like an e#tended family with high morale and Tom himself takes on the role of mentor or parental figure.

*n the values matri# *nstead they are like differentiation. With the advent of the *nformation Age, a new approach developed to deal with the fast$ paced and volatile business environment. (ocial, economic, and technological changes made older corporate attitudes and tactics less efficient. (uccess now was envisioned in terms of innovation and creativity with a future$forward posture. An entrepreneurial spirit reigns where profit lies in finding new opportunities to develop new products, new services, and new relationships"with little e#pectation that these will endure. Adhocracy organizations value fle#ibility, adaptability, and thrive in what would have earlier been viewed as unmanageable chaos. -igh$tech companies like /oogle are prototypical reate %adhocracy&. /oogle develops innovative web tools, taking advantage of entrepreneurial software engineers and cutting$edge processes and technologies. Their ability to @uickly develop new services and capture market share has made them leaders in the marketplace and forced less nimble competition to play catch$up. reate %adhocracy& are similar to ollaborate %clan& in that they emphasize fle#ibility and discretion: however, they do not share the same inward focus. reate %adhocracy& in their e#ternal focus and concern for

(ince each of these organizational types is distinguished by different attitudes, values, behaviors, and beliefs it is understandable that the same workspaces would not best support their different cultures. A ollaborate %clan& organization, with its emphasis on

teamwork and sociality, needs spaces that foster and reflect this. Aows of high paneled cubes, that might be appropriate in certain ompete %market& companies, would be incompatible with the way a ollaborate %clan& organization works and how it wants to present itself. The diagrams on the following page outline specific work space implications relative to the four organizational culture types


*t is very important to note that the substantial research that contributed to the development and validation of the organizational culture types focused on companies as a whole. Other research being conducted around the same time as the ompeting 2alues 3ramework " 0artin and (iehl %56=B&, Couis %56=B&, /regory %56=B&"emphasizes that the company culture is not homogeneous. *nstead, other subcultures are present and often even contradict aspects of the company culture. *n her recent book,
(andy 3ekete Companies are People; Too,

reports that functional teams within the D< corporations that they studied had a

different organizational type than their company =5E of the time. (chein %5666& notes that this is not necessarily dysfunctional, rather it allows the company to perform effectively in different environments based on function, product, market, location, etc. *n order to get a more accurate picture of the company, it is important to understand not only the company organizational type, but the cultures of departments or other important groups as well. The same organizational culture types " ontrol %hierarchy&, compete ontrol reate %adhocracy&, an %market&, collaborate %clan&, create %adhocracy&"apply at both levels. (o, a %hierarchy& company may contain a research group that is a engineering department that is a

ompete %market&, and a human resources department

that is a ollaborate %clan&. The spatial implications for these different groups may also compete with those of the company, so space planners are faced with greater comple#ity in space solutions.


As a company culture containing potentially numerous subcultures adds to the comple#ity of this approach, one other important issue must also be considered. The

ompeting 2alues 3ramework and its inclusion of the four organizational culture types
offer a simple means of categorization and understanding: however, it is possible for a company or department to have subdominant elements. This means that an accounting department that is a substantial ompete %market& traits. ontrol %hierarchy& may still have

*n fact, pure

ontrol %hierarchy&,

ompete %market&,

ollaborate %clan&, or


%adhocracy& are e#tremely rare. 0ost of the company cultures that have been diagnosed using ameron and Fuinns Organizational ulture Assessment *nstrument indeed have a strong secondary component. This is also the case at the departmentGgroup level. Their research has additionally shown that it is rare to have companies that share e@ual traits of all four culture types"with no dominant or barely dominant type.


These organizational categories are helpful in that they provide a foundation upon which space planners can begin to structure their solutions and thus account for the important role that culture plays. .ach of the different organization types has different cultural attributes and preferred methods and concerns for work. The means of assessing an organizations %company, group, or both& culture type using the O A* is relatively simple given the potential comple#ity of a comprehensive investigation. .ven though this procedure provides an easy mechanism for assessment and the four types are easy to understand, space planners still must look deeper and consider potential sub$dominant traits as well as the relationship between groups and the company as a whole.

Pi+torial Mo,el
2Collaborate 3Clan45 Culture An open and friendly place to work where people share a lot of themselves, it is like an e#tended family. Ceaders are considered to be mentors or even parental figures. /roup Coyalty and sense of tradition are strong. There is an emphasis on the long$term benefits of human resources development and great importance is given to group ohesion. There is a strong concern for people. The organization places a premium on Teamwork, participation, and consensus 2Create 3"dhocrac%45 Culture A dynamic, entrepreneurial, and creative place to work, *nnovation and risk$taking are embraced by employees and leaders. A commitment to e#perimentation and thinking differently are what unify the Organization, They strive to be on the leading edge. The long$term emphasis is on growth and ac@uiring new resources. (uccess means gaining uni@ue and new products or services. !eing an industry leader is important. *ndividual initiative and freedom are encouraged.

2Control 31ierarch%45 Culture A highly structured and formal place to work, Aules and procedures govern behavior. Ceaders strive to be good coordinators and organizers who are efficiency$minded. 0aintaining a smooth$ running organization is most critical. 3ormal policies are what hold the group together. (tability, performance, and efficient operations are the long$term goals. (uccess means dependable delivery, smooth scheduling, and low cost. 0anagement wants security and predictability.

2Compete 3Mar&et45 Culture A results$driven organization focused on 4ob completion. Heople are competitive and goal$oriented. Ceaders are demanding, hard$driving, and productive. The emphasis on winning unifies the organization. Aeputation and success are common concerns. Cong$term focus is on competitive action and achievement of measurable goals and targets. (uccess means market share and penetration. ompetitive pricing and market leadership are important.

Le-el# o. Culture

5. At evel One ATRIFACTS the organizational culture can be observed in the form of physical ob4ects, technology and other visible forms of behavior like ceremonies and rituals. Though the culture would be visible in various forms, it would be only at the superficial level. 3or e#ample, people may interact with one another but what the underlying feelings are or whether there is understanding among them would re@uire probing. 7. At evel T6o 7" $0# there is greater awareness and internalization of cultural values. Heople in the organization try solutions of a problem in ways which have been tried and tested earlier. *f the group is successful there will be shared perception of that Isuccess, leading to cognitive changes turning perception into values and beliefs. B. evel Three ASSUMPTIONS represents a process of conversion. When the group repeatedly observes that the method that was tried earlier works most of the time, it becomes the Ipreferred solution and gets converted into underlying assumptions or dominant value orientation. The conversion process has both advantages. The advantages are that the dominant value orientation guides

behavior, however at the same time it may influence ob4ective and rational thinking.

(e-elo"ing OC in-ol-e#
1eveloping a strong corporate identity 1evelopment of important values !uilding healthy traditions 1eveloping consistent management practices

Strong Cor"orate I,entit!

develops when employees have a sense of belonging, and feel proud of working with the organization, which develops as a result of interaction of employees with the organization. 1eveloping an attractive *nduction !ooklet 3ilms on success e#periences in the organization ompany newsletters

0obility of Heople

(e-elo"ing i/"ortant -alue#

2alues of e#cellence and human consideration develop only by demonstrating these values in action. (urveys of 2alues and differences bGw espoused vGs practiced values. (pecial value orientation programmes. .#amining the various systems operating in the organization. (pecial O1 intervention in ooperation and ollaboration.

'uil,ing Healt0! tra,ition# 1 "ra+ti+e#

Traditions are built in org. on the basis of important 3unctional rituals or celebrations *nduction programme for new entrant. Hromotions as transition. Aitual associated with )old age+ and retirement. .#ceptional behavior. elebration of special individual J important organizational days.