PSYCH-105 Industrial Psychology

Chapter 9: Organizational Culture and Climate

Unit 1

Unit 2

Unit 3

Unit 4

Appendix

Types of Organizational Culture

Categories

1. Authoritarian and Participative Culture

In the authoritarian culture there is centralization of power with the leader and obedience to orders and discipline are stressed. Participative culture tends to emerge where most organizational members see themselves as equals and take part in decision making.

2. Dominant Culture and Sub Cultures

A dominant culture is a set of core values shared by a majority of the organizations members. A sub culture is a set of values shared by a relatively small number of the organizations members.

3. Strong and Weak Organizational Cultures

A strong organizational culture refers to organizations in which beliefs and values are shared relatively consistently throughout an organization. Strong organizational cultures have a great influence on the behaviour of organizational members. A weak culture, on the other hand, means the opposite of a strong culture, in other words, organizational members do not subscribe to the shared beliefs, values and norms. Organizational members in a weak culture find it difficult to identify with the organization’s core values and goals. 

Types

Organizational culture can be classified on the basis of forms of attention and control orientation i.e. value matrix

1. Bureaucratic / Control Culture

An organization that values formality, rules, standard operating procedures, hierarchical coordination has a Bureaucratic culture.

2. Clan / Collaborate Culture

Tradition, loyalty, personal commitment, extensive socialization, team work, self management, and social influence are the main attributes of the clan culture. Because individual beliefs that the organization will treat them fairly in terms of salary increases, promotions and other forms of recognition, they hold themselves accountable to the organization for their actions.

3. Entrepreneurial / Create Culture

High levels of risk taking, dynamism and creativity characterize an Entrepreneurial culture. This culture doesn’t just quickly reacts to the changes in the environment, rather it creates change.

4. Market / Compete Culture

In the value matrix, compete (market) culture is similar to control (Bureaucratic) in that they value stability and control, however, instead of an involved focus they have an external orientation and they value differentiation over integration. 

Draw Backs of Culture

  1. Barrier to change and improvement 
  2. Barrier to diversity 
  3. Barrier to cross departmental and cross organizational cooperation 
  4. Barrier to mergers and acquisitions 

Author – Dr. Niyati Garg

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