ORGANIZATION

AL CULTURE

MODULE 4
 ORGANIZATIONAL CULTURE

• WHAT IS ORGANIZATIONAL CULTURE?

• Organizational culture is the set of values, beliefs, attitudes, systems, and
rules that outline and influence employee behavior within an organization.
The culture reflects how employees, customers, vendors, and stakeholders
experience the organization and its brand
• Organizational culture is generally understood as all of a
company’s beliefs, values and attitudes, and how these
influence the behaviour of its employees.

• Culture affects how people experience an organization—that is,

what it’s like for a customer to buy from a company or a
supplier to work with it. It shows up in company policies such
as dress code and office hours. It also informs things such as
workspace design and employee perks. Culture is usually set
by a company’s leaders.

• Companies don’t tend to define their cultures explicitly; they

tend to emerge from what people believe, how they think,
what they say and what they do. Culture shapes what
behaviour is acceptable or unacceptable. Culture may help
define values and core principles that guide organizational
behaviour.
• Culture is a key advantage when it comes to attracting talent and outperforming the
competition. 77 percent of workers consider a company’s culture before applying, and
almost half of employees would leave their current job for a lower-paying opportunity at
an organization with a better culture. The culture of an organization is also one of the top
indicators of employee satisfaction and one of the main reasons that almost two-thirds
(65%) of employees stay in their job.
• Consider Microsoft and Salesforce. Both technology-based companies are world-class
performers and admired brands, and both owe this in part to prioritizing culture.
Microsoft, known for its cut-throat competitiveness under Steve Balmer, has been
positively transformed by Satya Nadella, who took over as CEO of the company in 2014.
He embarked on a program to refine the company culture, a process that upended
competitiveness in favor of continuous learning. Instead of proving themselves,
employees were encouraged to improve themselves. Today Microsoft’s market cap flirts
with $1 trillion and it is again competing with Apple and Amazon as one of the most
valuable companies in the world.
THE 4 TYPES OF
ORGANIZATIONAL
CULTURE
Clan culture: emphasizes collaboration
across teams and a horizontal
structure.

Adhocracy culture: allows individuals to

share ideas and encourages the
company to take risks.

Market culture: focuses on financial

success and how each employee
contributes to revenue.

Hierarchy culture: emphasizes career

paths and provides clear managerial
processes.
 TYPE 1: CLAN CULTURE

• Primary focus: mentorship and teamwork.

• Motto: “we’re all in this together.”
• About clan culture: a clan culture is people-focused in the sense that the
company feels family-like. 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 it encourages mentorship
opportunities. These companies are action-oriented and embrace change, a
testament to their highly flexible nature.
• Clan culture definition
• Clan culture is a collaborative model usually paired with horizontal company
structure.
• Communication is key to this type of culture.
• Companies can implement clan culture by asking for direct feedback for
employees and taking action based on their suggestions.
 TYPE 2: ADHOCRACY CULTURE

• Primary focus: risk-taking and innovation.

• Motto: “risk it to get the biscuit.”
• About adhocracy culture: adhocracy cultures are rooted in innovation and adaptability.
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.
Adhocracy culture definition
• Adhocracy culture puts a focus on employees adapting and innovating.
• This culture helps companies take risks and invites individuals to share their
ideas.
• Companies can implement adhocracy culture by hosting strategy and
brainstorming sessions.
 TYPE 3: MARKET CULTURE

• Primary focus: competition and growth.

• 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.
MARKET CULTURE DEFINITION
• COMPANIES WITH A MARKET CULTURE ARE FOCUSED ON FINANCIAL SUCCESS
AND MEETING GOALS AND TARGETS.
• EACH EMPLOYEE WORKING WITHIN MARKET CULTURE PLAYS A DISTINCT PART
IN REACHING THE COMPANY’S LARGER GOALS.
• COMPANIES CAN IMPLEMENT MARKET CULTURE BY ANALYZING EACH ROLE
WITHIN THE COMPANY AND DETERMINING THE ROI OF EACH ROLE.
REWARDING TOP PERFORMERS WILL MOTIVATE EMPLOYEES.
 TYPE 4: HIERARCHY CULTURE

• Primary focus: structure and stability.

• 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.
Hierarchy culture definition
• Companies with hierarchy culture have a clear chain of command and
detailed career paths within the organization.
• These companies tend to avoid risk and focus on internal organization.
• Companies can implement hierarchy culture by ensuring each department
and team has clear and concise processes and managerial structure.
FUNCTIONS OF
ORGANIZATION
AL CULTURE
 MUST DO'S FOR CREATING AND
SUSTAINING A STRONG CULTURE
• Focus on the positive
• Ensure shared values
• Give and receive feedback
• Follow-through
• Care about your team members
• Play to strengths and look for the bright spots
• Set expectations
• Evaluate processes and procedures
HOW TO CHANGE THE CULTURE
OF AN ORGANIZATION

1. Set a vision
2. Organize a team of facilitators
3. Set a timeline and budget
4. Use digital platforms and tools
5. Display leadership
6. Engage the entire workforce in every step
7. Effective diagnosis
8. Creating a plan
9. Implementing change
10. Follow through
THANK
YOU