Thursday, 8 April 2021

Organizational Culture - Features & Types (Management-1 08April 2021)

Organizational Culture - Features & Types

 

Important Features of OC

1. Innovation and Risk Taking:

‘Innovation is the way of life in Microsoft.’ ‘Innovation is the key characteristic of Gillette Company.’ Companies encourage the employees to be innovative and risk takers at different degrees.

2. Attention to Detail:

‘Employees in the Boston Consultancy Group are expected to be precise, analytical and pay attention to even the minor details.’ Thus, organisations require their employees to be precise, analytical and pay attention to the minute details at different degrees.

3. Outcome Orientation:

‘Coromandal Cements expects its employees to improve their performance at least by 5% every year irrespective of the approaches they follow.’ Thus, the organisations require their employees to pay attention or the results.

4. People Orientation:

‘Hewlett and Packard announced one day unpaid holiday for every nine working days and avoided lay-off.’ Thus, the organisations take the effect of its decisions on the employees.

5. Team Orientation:

“Global Solutions repeats: “We Work.” It does mean that the activities are designed around teams but not individuals. Thus, we today find team jobs rather than individual jobs.

6. Aggressiveness:

The employees of State Bank of India were not allowed to be aggressive whereas the employees of IDBI Bank are expected to be aggressive and competitive. Thus, aggressiveness is the level to which the employees are expected to be competitive rather than easy-going.

7. Stability:

Most of the Indian Universities still have the status quo strategy of maintaining the traditional values and beliefs of ‘Guru and Shishya’ parampara of Gurukulas.

8. Radical Change:

In contrast to the stability strategy, most of the organisations after 1991 have the growth, diversification and conglomerate diversification strategies. It is the degree at which the organisational activities emphasise growth and diversification.

9. Customer Orientation:

Pizza Huts build up relationship with the customers and then adapt aggressive marketing strategies. It is the degree to which the management decisions take into consideration the effect of outcomes on customers of the organisation.

 

Various Types of Organization Culture:

 

Normative Culture: In such a culture, the norms and procedures of the organization are predefined and the rules and regulations are set as per the existing guidelines. The employees behave in an ideal way and strictly adhere to the policies of the organization. No employee dares to break the rules and sticks to the already laid policies.

Pragmatic Culture: In a pragmatic culture, more emphasis is placed on the clients and the external parties. Customer satisfaction is the main motive of the employees in a pragmatic culture. Such organizations treat their clients as Gods and do not follow any set rules. Every employee strives hard to satisfy his clients to expect maximum business from their side.

Academy Culture: Organizations following academy culture hire skilled individuals. The roles and responsibilities are delegated according to the back ground, educational qualification and work experience of the employees. Organizations following academy culture are very particular about training the existing employees. They ensure that various training programmes are being conducted at the workplace to hone the skills of the employees. The management makes sincere efforts to upgrade the knowledge of the employees to improve their professional competence. The employees in an academy culture stick to the organization for a longer duration and also grow within it. Educational institutions, universities, hospitals practice such a culture.

Baseball team Culture: A baseball team culture considers the employees as the most treasured possession of the organization. The employees are the true assets of the organization who have a major role in its successful functioning. In such a culture, the individuals always have an upper edge and they do not bother much about their organization. Advertising agencies, event management companies, financial institutions follow such a culture.

Club Culture: Organizations following a club culture are very particular about the employees they recruit. The individuals are hired as per their specialization, educational qualification and interests. Each one does what he is best at. The high potential employees are promoted suitably and appraisals are a regular feature of such a culture.

Fortress Culture: There are certain organizations where the employees are not very sure about their career and longevity. Such organizations follow fortress culture. The employees are terminated if the organization is not performing well. Individuals suffer the most when the organization is at a loss. Stock broking industries follow such a culture.

Tough Guy Culture: In a tough guy culture, feedbacks are essential. The performance of the employees is reviewed from time to time and their work is thoroughly monitored. Team managers are appointed to discuss queries with the team members and guide them whenever required. The employees are under constant watch in such a culture.

Bet your company Culture: Organizations which follow bet your company culture take decisions which involve a huge amount of risk and the consequences are also unforeseen. The principles and policies of such an organization are formulated to address sensitive issues and it takes time to get the results.

Process Culture: As the name suggests the employees in such a culture adhere to the processes and procedures of the organization. Feedbacks and performance reviews do not matter much in such organizations. The employees abide by the rules and regulations and work according to the ideologies of the workplace. All government organizations follow such a culture.

 

Different Types of Organizational Culture

The culture a firm follows can be further classified into different types. They are −

·                  Mechanistic and Organic culture

·                  Authoritarian and Participative culture

·                  Subculture and Dominant culture

·                  Strong and Weak culture

·                  Entrepreneurial and Market culture

1. Mechanistic and Organic Culture

Mechanistic culture is formed by formal rule and standard operating procedures. Everything needs to be defined clearly to the employees like their task, responsibility and concerned authorities. Communication process is carried according to the direction given by the organization. Accountability is one of the key factors of mechanistic culture.

Organic culture is defined as the essence of social values in an organization. Thus there exists a high degree of sociability with very few formal rules and regulations in the company. It has a systematic hierarchy of authority that leads towards free flow of communication. Some key elements of organic culture include authority, responsibility, accountability and direct flow towards the employee.

2. Authoritarian and Participative Culture

Authoritarian culture means power of one. In this culture, power remains with the top level management. All the decisions are made by the top management with no employee involvement in the decision making as well as goal shaping process. The authority demands obedience from the employee and warns them for punishment in case of mistake or irregularity. This type of culture is followed by military organization.

In participative culture, employees actively participate in the decision making and goal shaping process. As the name suggests, it believes in collaborative decision making. In this type of culture, employees are perfectionist, active and professional. Along with group decision making, group problem solving process is also seen here.

3. Subculture and Dominant Culture

In subculture, some members of the organization make and follow a culture but not all members. It is a part of organizational culture, thus we can see many subcultures in an organization. Every department in a company have their own culture that gets converted to a subculture. So, the strength and adaptability of an organizational culture is dependent on the success of subculture.

In dominant culture, majority of subculture combine to become a dominant culture. The success of dominant culture is dependent on the homogeneity of the subculture, that is, the mixture of different cultures. At the same point of time, some cold war between a dominant culture and a minor culture can also be seen.

4. Strong and Weak Culture

In a strong culture, the employees are loyal and have a feeling of belongingness towards the organization. They are proud of their company as well as of the work they do and they slave towards their goal with proper coordination and control. Perception and commitment are two aspects that are seen within the employees. In this culture, there is less employee turnover and high productivity.

In a weak culture, the employees hardly praise their organization. There is no loyalty towards the company. Thus, employee dissatisfaction and high labor turnover are two aspects of this culture.

5. Entrepreneurial and Market Culture

Entrepreneurial culture is a flexible and risk-taking culture. Here the employees show their innovativeness in thinking and are experimental in practice. Individual initiations make the goal easy to achieve. Employees are given freedom in their activity. The organization rewards the employees for better performance.

Market culture is based on achievement of goal. It is a highly target-oriented and completely profit-oriented culture. Here the relationship between the employees and the organization is to achieve the goal. The social relation among the workers is not motivating.

 

Various Types of Organizational Cultures

a. Strong Culture – Refers to a culture that holds and shares the core values of the organization deeply and extensively.

b. Dominant Culture – Expresses the core values accepted and followed by the majority of the employees of the organization.

c. Sub-Culture – Refers to the mini-cultures or small cultures within an organization. For example, the culture prevalent in a particular department of an organization is sub-culture.

d. Counter Culture – Refers to the culture, which does not match with the values of the organization. Counter culture can be seen at the time of mergers and acquisitions when the employees of acquired organization may have cultural values that are conflicting with that of acquiring organization.

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