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Which Organization Culture type is the right fit for your organization?

Introduction

Organizational culture is the underlying beliefs, assumptions, values & ways of interacting that contribute to that unique social & psychological environment. It is important to choose the culture type based on the organization type & its vision & mission statement. It is very important for every member to be aligned with the organization’s goals & objectives.



Organization culture types

1. Clan Culture

With this type, there is not much hierarchy or competitiveness & power usage, it is a family type of environment where everyone’s views & ideas are valued & entertained. It uses a consensus mechanism to take decisions which is collective in nature. Employees in such culture celebrate, help each other, play & have fun collectively.


Pros:

· There will be greater productivity & growth, and employees openly voice their opinions.

· Employees get appreciated also criticized constructively without hurting anyone’s sentiments.

Cons:

· Excessive collaboration, Employees may have unnecessary chatter, which can drop productivity at times.

· Inability to make Tough decisions due to the fact other people’s feelings are valued much while making any decisions.

The best fitment of such a culture would be an organization whose core value is to be working like a Family. Example: Zappos an online retailer.



2. Adhocracy culture

This type of culture entertains people to take risks, here the leaders are very innovative & creative, so they expect the same from ground-level staff. There is no space for assumptions in such an organization, leaders are very inspirational innovators.


Pros:

· Everyone commits to innovation as a shared model of commitment.

· There is always a competitive advantage in the market for being innovative & creative.

· Welcomes all ideas to promote innovativeness. Increases psychological safeness.


Cons:

· Too many new ideas or too much of innovations might bring instability.

The best fitment of such a culture would be an organization whose core value focuses on Research & Development to be continuously innovating & be innovative. Example: Apple Inc. , Google.


3. Market Culture

It is a competitive culture because it is focused on results or end outcomes, here employees are highly goal-focused, and leaders are Tough & demanding to achieve success, it can be a very high-pressure environment yet rewarding for those who achieve the results.

Pros:

· Employees are highly motivated to achieve their goals.

· Commitment to success.

Cons:

· Constant competition might break the culture.

· Can be stressful & can lead to burnout.

Example: Amazon has a company whose Leadership Principle is to “deliver results “


4. Hierarchy Type

These are more structured & process-driven, it's controlled. Communication is clear in such, everything is prescribed.


Pros:

More control, clear communication.


Cons:

People might be afraid to think out of the box.



Conclusion:

An Research & Development company depends on innovativeness & creativity, if such an organization chooses to adopt “Clan culture” it might result in enough idea brainstorming among people but might lead to excess collaboration, which might defeat the objective of innovativeness, while a “market culture” would be best suited for B2C kind of business & marketing companies whose goal & objective is results focused, so the best suit for an Innovative company would be to adopt the “Adhocracy culture” which focusses on innovation has its primary goal, it is good to combine Adhocracy & hierarchy culture to have better control, clear communication channel while the employees all work towards the company’s vision & mission. It is worth changing the organization’s culture to maximize the benefits of having the right fit for your organization.


Thanks


Reference:

Griffin, Ricky W, and Gregory Moorhead. Organizational Behavior: Managing People and Organizations. Boston, Houghton Mifflin Co, 2014.

Understanding and Developing Organizational Culture. Retrieved November 27, 2022, from https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/understandinganddevelopingorganizationalculture.aspx

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