An overview of the concept of organizational culture – from its best-known representatives
Júlia Pászner-Kopácsi | Junior trainer
Júlia Pászner-Kopácsi | Junior trainer
Organizational culture now plays a decisive role in the long-term success and performance of companies. In recent decades, various models and theories have helped to understand this complex phenomenon. These models shed light on how culture influences the behavior of employees, the internal functioning of the organization, and how it contributes to the company’s success in the external market environment.
Basic models of organizational culture:
One of the very first theories defining culture types was created by Slevin and Corvin, who separated mechanical and organic culture. Based on Charles Handy’s later model, organizational cultures can be divided into four types:
• power culture
• role culture
• task culture
• personality culture.
These different cultures represent different management styles, ways of operating and corporate values, and thus result in different types of workplace atmospheres and rules.
According to Marvin Bower, organizational culture is like “the way we do our work here”, while Daft, using the iceberg analogy, highlighted that culture is deeply rooted in the organization. New colleagues or outside observers only see the surface; this includes, for example, habits and behaviors. The deeper, invisible parts are made up of stories, internal jargon, symbols and basic beliefs.
Schein’s model of three levels of culture:
Edgar Schein’s three-level model is also popular for understanding organizational culture.
• Level 1 is the level of assets and formations:
it includes easily observable external characteristics such as corporate office layout, dress code, and professional language.
• Level 2 is the level of values and ideologies:
which is less obvious, refers to the relations between colleagues and the internal norms of the organizational rules.
• Level 3, the level of basic assumptions:
it includes deep-seated beliefs that all members of the organization instinctively follow and that govern human relationships, leadership styles, and balance.
McKinsey’s 7S model:
The McKinsey 7S model also provides an excellent framework for analyzing organizational culture, where seven factors
• strategy
• structure
• systems
• skills
• personnel
• style
• value system
we are classified into two main groups, hard and soft factors. Hard factors – strategy, structure and systems – are the rules and processes that govern the organization’s operations. Soft factors, such as skills, personnel, management style and shared values, are more reflective of the company’s internal atmosphere and values. The harmony between these factors determines how well the organization can adapt to the changing environment and new challenges.
The Competing Values Model:
Kim Cameron and Robert Quinn’s Competing Values Framework (CVF) model separates four culture types along two dimensions. One dimension indicates the balance between external-internal orientation and the other between flexibility and control. Clan, hierarchy, market, and adhocracy culture types all result in different workplace climates and leadership styles.
• Clan:
The clan-type culture creates a familiar, friendly atmosphere. Team spirit, mutual support and loyalty are important, and managers appear in the role of mentors.
• Hierarchy:
Hierarchical culture reflects a high level of organization, structure and regulation, where formalized rules and procedures ensure stability and efficiency.
• Market:
The market-type culture is goal-oriented and result-oriented. Competition, performance and external environmental expectations strongly influence organizational decisions, where managers are strict and requirement-oriented.
• Adhocracy:
Characteristics of an adhocracy include creativity, dynamism, and flexibility. Employees are innovative and open to new ideas and risk-taking, and managers are focused on the future.
Why is Organizational Culture Important?
• A thorough understanding of the organizational culture helps the internal processes of the organization and the operation of management.
• Culture supports change, improves employee engagement and contributes to long-term sustainability.
• Culture awareness for managers and employees enables a better understanding of shared values and goals, through which the organization can successfully adapt to external challenges.
• A harmonious organizational culture not only helps improve performance, but also creates an environment where employees can work happily, motivated and committed.
