5 minutes

Types of corporate culture

Dr. Alaa Jarrad

Garad@alaagarad.com

August 23 2022

I was surprised by the size of the comments I received about last week's article, regarding the importance of institutional culture, so today's article will address some of its types, and at the beginning it should be clarified that cultural change is usually associated with a specific event that serves as a spark to start and draw attention to the presence of an urgent need for cultural change and intellectual transformation in the organization, as if Significant losses occur, or a continuous deterioration in performance, or the application of a new management model, or a change in the leadership of the organization. The thinker and expert in corporate culture «Edgar Shane».

After the measurement process and knowing the type of the prevailing institutional culture, a strategic plan for cultural transformation is drawn up, targets and a time frame for that change are set, as well as monitoring the necessary budget and the accompanying training and awareness plan.The following is an explanation of the types of cultures according to the OCAI model, which is based on cumulative knowledge supported by scientific research, and the model differentiates between four types of institutional culture based on two axes. Focusing on market developments and local and global events. The second axis is the comparison between flexibility and stability, i.e. does the organization tend to be more flexible and renewable, or fixed or frozen, striving towards conformity and control, not development? The two axes result in four types of culture: dynamic and entrepreneurial (friendly) culture. , collaborative and worker-oriented culture (clan), structured and process-oriented control culture (hierarchy), and results-oriented competitive culture (market culture).

In the first type (friendly culture) the work environment is a creative dynamic.

Workers do not mind taking risks and experimenting in the performance of tasks, leaders are seen as innovative and risk-takers, the common language is experimentation and innovation, the long-term goal is growth and the creation of new resources, innovation of new products or services is the greatest success, and the organization promotes individual initiative and freedom.

Type 2 (clan culture) Workers have a lot in common, it looks like a big family, leaders are seen as mentors, organization is held together by loyalty and tradition, there is great participation, success is defined in terms of meeting customer needs, and promotes Enterprise Teamwork, Participation and Compatibility.

As for the third type (hierarchy), the work environment is organized and tidy, there are many procedures that guide what workers do, leaders are proud of efficiency-based coordination and organization, and keeping the organization running smoothly is the most important, and literally adherence to formal rules and policies, and objectives The long-term is stability and results, and there is a keenness on continuous planning and low cost.

As for the last type (market culture) in which work is based on results, goals, deadlines and getting things done, leaders are productive and competitors, have firmness in decisions, and the goals of the organization are winning, reputation, success and competitiveness, achieving goals, dominating the market, competitive prices and leadership in market.

For the rest of the talk.

Cultural change is usually associated with a specific event that serves as the starting point.

Alaa_Garad

Garad@alaagarad.com 

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Garad@alaagarad.com