Organizational Culture

Every organization has its own culture.  It is the personality of an organization.  What is culture?  It is the sum total of assumptions, values, norms and tangible signs of the members of the organization and their behavior.  Culture is difficult to pin point or specify, but it can be felt or sensed when you experience it.

The culture of a profit oriented business is different from a social organization, the motto of which is service.  Even the dress code is different.  In a corporate, it is a `system`.  Inputs are society, profession, value of competition, service, etc; the process is based on our assumptions, value and norms, value as money, times, facilities, space and people.  Outputs are organizational behavior, technologies, strategies, image, products, services, appearances, etc.

Culture becomes imperative when organizational changes are attempted.  These changes must incorporate not only changing structure and processes, but also changing the corporate culture itself.

There has been sufficient literature on the concept of organizational culture, especially in regard to how to change the organizational culture.  Many a time, efforts to change organizational culture have failed.  This failure is due to lack of understanding about the vital need and role culture plays in organizations.  That is why many strategy planners place a lot of emphasis on identifying strategic values as they do on “mission and vision”.

There are different types of culture, just like personalities.  Researcher Jeffrey Sonnenfeld identified the following four types of culture:

• Academy Culture: Highly skilled employees work their way up an organization.  Organizations provide stable environment to develop and exercise their skills.  Examples: large corporates, hospitals, universities, etc.
• Baseball Team Culture: Employees are highly skilled and are `free agents`.  They are in high demand and can get placements easily.  This type exists in fast paced organizations like investment banking, advertising, etc.
• Club Culture: Employees have to fit into a group.  Promotions are from within and seniority is highly valued.  Employees start at the lower rung level and stay with the organization.  Example: Military, law firms, etc.
• Fortress Culture: Employees have no clue if they will be retained or sent out.  The organization undergoes major re-organization.  People with specialized skills have better opportunities in this type of organizations.  Example: Savings and loans, large automobile companies, etc.

Questions:

• Write a brief note on organization culture.
• What are the four types of organization culture?