TYPES OF ORGANISATIONAL CULTURE

TYPE 1 - CLAN CULTURE

Primary Focus: Mentorship and teamwork

Defining Qualities: Flexibility and discretion; internal focus and integration

Motto: “We’re all in this together.”

About clan culture: A clan culture is people-focused in the sense that the company feels
like one big happy family. This is a highly collaborative work environment where every
individual is valued and communication is a top priority. Clan culture is often paired with a
horizontal structure, which helps to break down barriers between the C-suite and employees
and encourage mentorship opportunities. These companies are action-oriented and embrace
change, a testament to their highly flexible nature.

Benefits: Clan cultures boast high rates of employee engagement, and happy employees
make for happy customers. Because of its highly adaptable environment, there’s a great
possibility for market growth within a clan culture.

Drawbacks: A family-style corporate culture is difficult to maintain as the company grows.

Plus, with a horizontal leadership structure, day-to-day operations can seem cluttered and
lacking direction.

Where you’ll find clan culture: Adaptable, team-oriented with a horizontal structure?
It’s no surprise that clan cultures are often seen in startups and smaller companies. Young
organizations that are just starting out put a heavy emphasis on collaboration and
communication, leadership looks to employees for feedback and ideas and companies
prioritize team-building.

For companies with a large percentage of employees working remotely like HR tech
provider Hire-ology, creating an empathetic and communicative company culture is key to
success. “When you have a blended team, your local staff can help bridge gaps and build
empathy,” says Joel Schlundt, Vice President of Engineering at Hireology. The team
coordinated job swaps to help employees better understand and appreciate their peers’ roles.

How to create this culture within your organization: To cultivate a clan culture
within your company, your first step is to turn to your employees. Communication is vital to
a successful clan culture, so let your team know that you’re open to feedback. Find out what
they value, what they’d like to see change, what ideas they have to help push the company
further. Step two: take their thoughts into account and put them into action.

Example of this culture type: Online shoe and clothing retailer, Zappos, is often praised
for having a positive culture – so much so that the company’s CEO literally wrote
abook ontheir culture of happiness. With “build a positive team and family spirit” as one of
their ten core values, they best fit the clan culture model.
TYPE 2 - ADHOCRACY CULTURE
Primary Focus: Risk-taking and innovation

Defining Qualities: Flexibility and discretion; external focus and differentiation

Motto: “Risk it to get the biscuit.”

About adhocracy culture: Adhocracy cultures are rooted in innovation. These are the
companies that are on the cutting-edge of their industry — they’re looking to develop the
next big thing before anyone else has even started asking the right questions. To do so, they
need to take risks. Adhocracy cultures value individuality in the sense that employees are
encouraged to think creatively and bring their ideas to the table. Because this type of
organizational culture falls within the external focus and differentiation category, new ideas
need to be tied to market growth and company success.

Benefits: An adhocracy culture contributes to high profit margins and notoriety. Employees
stay motivated with the goal of breaking the mold. Plus, with a focus on creativity and new
ideas, professional development opportunities are easy to justify.

Drawbacks: Risk is risk, so there’s always a chance that a new venture won’t pan out and
may even hurt your business. Adhocracy cultures can also foster competition between
employees as the pressure to come up with new ideas mounts.

Where you’ll find adhocracy culture: Think of Google, Facebook or Apple — these
are companies that embody the external focus and risk-taking nature of adhocracy culture.
They run on creative energy and doing what hasn’t been done before. Adhocracy cultures are
commonplace within the ever-changing tech industry where new products are being
developed and released on a regular basis.

How to create this culture within your organization: Depending on your industry,
it may be hard to develop an authentic adhocracy culture that includes a high-risk business
strategy. However, implementing strategy and brainstorming sessions provides employees
with the opportunity to share big ideas that can help to propel the company further.
Rewarding successful ideas encourages teams to think outside of the box, too.

Example of this culture type: Google didn’t become one of the most well-known tech
companies in the world by resting on its laurels. The company is all about innovating to
improve search and launch new offerings, which means their culture is best described as an
adhocracy culture. Another good example of adhocracy culture is Facebook, although their
“move fast and break things” mentality has had to shift recently due to increased consumer
vigilance.

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TYPE 3 - MARKET CULTURE
Primary Focus: Competition and growth

Defining Qualities: Stability and control; external focus and differentiation

Motto: “We’re in it to win it.”

About market culture: Market culture prioritizes profitability. Everything is evaluated

with the bottom line in mind; each position has an objective that aligns with the company’s
larger goal, and there are often several degrees of separation between employees and
leadership roles. These are results-oriented organizations that focus on external success rather
than internal satisfaction. A market culture stresses the importance of meeting quotas,
reaching targets and getting results.

Benefits: Companies that boast market cultures are profitable and successful. Because the
entire organization is externally focused, there’s a key objective employee can get behind and
work toward.

Drawbacks: On the other hand, because there’s a number tied to every decision, project
and position within the company, it can be difficult for employees to meaningfully engage
with their work and live out their professional purpose.

Where you’ll find market culture: The goal of a market culture company is to be the
best in its industry. Because of that, these are often larger companies that are already leaders
of the pack. They’re looking to compete and beat out anyone else that may compare.

For an industry leader like Bluecore, a retail marketing platform that utilizes AI technology,
providing employees with clear objectives helps the team provide the all-star customer
service it’s known for. “Our team is clear on its goals and we are incentivized through
compensation structure and recognition,” says Vice President of Customer Success Kim
Surko. “With that foundation, we can apply our personality and values to define how we will
accomplish those goals.”

How to create this culture within your organization: Because every aspect of a
market culture is tied to the company’s bottom line, start by evaluating each position within
your organization. Calculate the ROI of every role and ascribe reasonable benchmarks for
production. Consider rewarding top performers to encourage similar work.

Example- Apple Inc. was following and recently following market culture under reign of
Steve Jobs and now under Tim Cook respectively. Apple Inc.’s organizational culture is a key
factor in the continuing success of the business. Apple has a corporate culture that enables
human resources to support various strategic objectives. the company’s cultural traits are
aligned with the drive for innovation, which is a major factor that determines business
competitiveness in the information technology, online services, and consumer electronics
industries. Through the leadership of Steve Jobs and, now, through the leadership of Tim
Cook,

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the company continues to enhance its cultural characteristics to maximize human resource
support for business relevance in various markets around the world. Apple shapes its
corporate culture and uses it as a tool for strategic management and success.

TYPE 4 - HIERARCHY CULTURE

Primary Focus: Structure and stability

Defining Qualities: Stability and control; internal focus and integration

Motto: “Get it done right.”

About hierarchy culture: Companies with hierarchy cultures adhere to the traditional
corporate structure. These are companies focused on internal organization by way of a clear
chain of command and multiple management tiers that separate employees and leadership. In
addition to a rigid structure, there’s often a dress code for employees to follow. Hierarchy
cultures have a set way of doing things, which makes them stable and risk-averse.

Benefits: With internal organization as a priority, hierarchy cultures have clear direction.
There are well-defined processes that cater to the company’s main objectives.

Drawbacks: The rigidity of hierarchy cultures leaves little room for creativity, making
these companies relatively slow to adapt to the changing marketplace. The company takes
precedence over the individual, which doesn’t necessarily encourage employee feedback.

Where you’ll find hierarchy culture: Hierarchy cultures can be found at both ends of
the corporate spectrum, from old-school organizations to those of the customer service
industry, such as fast-food restaurants. These are companies that are hyper-focused on how
day-to-day operations are carried out and aren’t interested in changing things up anytime
soon.

How to create this culture within your organization: The first step to establishing
a hierarchy culture is to button up your processes. If the chain of command has some gaps,
fill them. Consider every team and department to ensure they have clear long- and short-term
goals.

Example: Government organizations are good examples of this type of culture, as are
organizations where safety is a primary concern—health care and aviation. In general,
military personnel give orders only to those directly below them in the chain of command and
receive orders only from those directly above them. The chain of command means that
individual members take orders from only one superior and only give orders to a defined
group of people immediately below them.

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 Question. Article and list of factors affecting the Organisational
Culture.
Organizational culture is described as the shared values, beliefs, or perceptions held by
employees within an organization or organizational unit. Because organizational culture
reflects the values, beliefs and behavioural norms that are used by employees in an
organization to give meaning to the situations that they encounter, it can influence the
attitudes and behaviour of the staff. Understanding the organization's core values can prevent
possible internal conflict, which is the main reason for our research into these cultural issues.
In other management fields, empirical research of organizational culture has involved the
functionalist perspective, providing impressive evidence of the role of organizational culture
in improving performance. The pervasiveness of an organizational culture requires that
management recognize its underpinning dimensions and its impact on employee-related
variables, such as job satisfaction, organizational commitment, and performance. Lund
believed that less research was done on the relationship between organizational culture and
job satisfaction within the research topic of organizational culture and outcome. The
organization consists of the staff, with the behaviour of its individual members affecting
outcomes. Since cultural research within the nursing field is not common [8], it is necessary
to explore the way the culture influences the behaviour of the nursing staff, and in turn how
the behaviour of the staff influences the organizational outcome.
A two-dimensional model of leadership that focuses on the concern for people and
production has been used for many years in organizational research. In the late 1970s,
leadership research started focusing on behaviour within organizational change and
development. Leadership implies authority in the broadest sense of the word and not simply
the power to wield the stick. It is based on objective factors, such as managerial ability, and
more subjective characteristics that include personal qualities of the leaders. The factors are
of even greater importance given the current emerging culture of the nurse who has a clear
and assertive vision about the nature of clinical practice.
Currently, there is a shortage of nurses in clinical care, and good leaders can help any
attrition. Furthermore, the leadership skills of nurse administrators can contribute to the
success of their organization. Leadership is of increasing importance in clinical nursing.
Although leadership and organizational culture constructs have been well studied, the
relationship between them has not been established in the field of nursing. This study
explores the relationship between organizational culture and leadership behaviour.
 Influence of the founder (shadow of the leader)
 Size & development stage of the business (e.g., start-up, multisite, multinational)
 Organisational structure, policies & practices
 Employee & management reward structures (e.g., pay, bonuses, individual v team
rewards)
 Market /industries in which it operates
 Working environment & nature of tasks (e.g., physical, office, remote working,
flexible working)
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 External environment (e.g., legal, economic, social)
 Attitude of organisation to risk-taking & innovation
 Sector: e.g., service, manufacturing
 Leadership & management style: The management and its style of handling the
employees also affect the culture of the workplace. There are certain organizations
where the management allows the employees to take their own decisions and let them
participate in strategy making.
 The sex of the employee (male employees dominate the female counterparts follow a
culture where late sitting is a normal feature. The male employees are more
aggressive than the females who instead would be caring and soft-hearted)
 individual working with the organization; The first and the foremost factor affecting
culture is the individual working with the organization. The employees in their own
way contribute to the culture of the workplace. The attitudes, mentalities, interests,
perception and even the thought process of the employees affect the organization
culture.
 The nature of the business : The nature of the business also affects the culture of the
organization. Stock broking industries, financial services, banking industry are all
dependent on external factors like demand and supply, market cap, earning per share
and so on. When the market crashes, these industries have no other option than to
terminate the employees and eventually affect the culture of the place. Market
fluctuations lead to unrest, tensions and severely demotivate the individuals. The
management also feels helpless when circumstances can be controlled by none.
Individuals are unsure about their career as well as growth in such organizations.
 The culture of the organization is also affected by its goals and objectives. The
strategies and procedures designed to achieve the targets of the organization also
contribute to its culture.
 The clients and the external parties to some extent also affect the work culture of the
place. Organizations catering to UK and US Clients have no other option but to work
in shifts to match their timings, thus forming the culture.

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