Abstract
First, the essay discusses the importance of culture and provides different definitions of culture, revolving around the idea that culture is ‘how things are done around here’. There are a large number of different models and theories that describe organisational culture; however the focuses on the theories of Schneider, Handy and Hofstede. The Schneider’s model has four quadrants, with two dichotomies, first is the organisation’s orientation towards current performance vs. future opportunities, and second is orientation towards people vs. process. Similarly, Handy's theory describes four main types of organisational culture; however, the division is based on the type of organisational structure. Finally, Hofstede’s cultural dimensions theory describes the differences between national cultures; however it is very useful for managers in making decisions and employees working in a modern globalized world. Hence, it can be suggested that three theories are different and similar at the same time, but all of them can be very useful if applied properly.
Culture is an integral part of the science of organisational behaviour. Shahzad et al. (2012) note the positive impact of strong culture on organisational performance; however it depends on the context. Watkins (2013) says culture is the power that shapes behaviour in an organisation and thus it is crucial to the success of an organisation. However, Alvesson (2012) notices the lack of consensus in defining the term “culture” in the context of organisational behaviour. Mullins and Christy (2013) suggest that the definition might include the notion that culture is about ‘how things are done around here’. Watkins (2013) states that organisational culture can be generally defined as the “sum of values and rituals which serve as ‘glue’ of the organisation”. Hence, culture is the thing that makes an organisation unique. Indeed, Nelson and Quick (2011) highlight the importance of organisational culture because of its crucial role in creating the sense of identity, enhancing the commitment, reinforcing organisational values and controlling and shaping employees’ behaviour. Moreover, Kotter (2008) notices that organisational culture influences employee job satisfaction, employee commitment and organisational performance in general. Klein (2011) conducts a large empirical study and concludes that organisations with adaptive, flexible, and constructive cultures are more competitive. This essay will briefly explore the topics of the models/theories of Schneider, Handy and Hofstede.
Maximini (2015) says there are a many theories and models of organisational culture. This includes Deal and Kennedy’s Cultural Model, the cultural web of Johnson, Scholes and Whittington, Hofstede’s theory of cultural dimensions, Schneider's culture model, Handy’s four classes of organisational culture, and many others. The latter three will be analysed.
The model of William Schneider states that the organisational culture can be defined using two major dichotomies, which are reality vs. possibility orientation and people vs. company (process) orientation; hence there are four major types of cultures (Patary, 2015). First is the control culture, which is oriented to reality (objective measures) and the organisation (process). It is widely used in bureaucratic organisations, which value certainty and compliance; such organisations are very resistant to change (Maximini, 2015). Cultivation culture is the exact opposite; it is people-driven and focused on finding the new opportunities for growth (Patary, 2015). The best examples are small technological start-ups that often raise huge investments thanks to their innovative ideas. Collaboration culture is about people who work together; the spirit of an organisation is egalitarian and employees are focused on satisfying the changing needs of customers and offering the best customer value. The examples are small coffee shops or bars that have a good reputation among customers, as the employees are energetic, sociable and optimistic. Finally, the competence culture is about product excellence, it promotes logic and future opportunities. Steiber and Alänge (2015) state Facebook, LinkedIn and Twitter can be considered as the companies with a competence culture. Maximini (2015) and Patary (2015) suggest that the theory might be very helpful for managers if they apply it to the real world. For example, companies with rigid control and hierarchy would have to change own cultures to become more flexible if necessary. The theory shows there are no bad types of culture as each type is good in a particular context.
The theory of Charles Handy has a number of similarities to the model of William Schneider; it also has four major types to describe the organisational culture (Mullins and Christy, 2013). However, unlike the approach proposed by William Schneider, the typology is not based on two dichotomies. It is based on the structure of organisations and how power is shared. Both characteristics are easier to analyse; hence, it is easier to define the organisational culture based on the typology of Charles Handy. The first type is the power culture. Here, one or very few persons have an overwhelming power and make all the decisions (Alvesson, 2012). Such organisations are flexible; however an organisation fully depends on the individual(s) who are in the middle of the scheme. The vivid examples are small companies with a rather authoritarian but effective management. On the other hand, the role culture emphasizes bureaucracy and the person’s power comes from the position. Organisations with role culture are rigid and slow; however, this may be the best option for large organisations. The companies with the task culture use matrix structures; here different teams are formed to solve particular issues and achieve certain goals, they are dynamic and creative, but their culture is not stable (Alvesson, 2012). Finally, the person culture is similar to both competence and collaboration cultures under Schneider’s theory, as these cultures value people and individualism; the most prominent examples for companies with the person culture are law firms (ibid). This theory is useful to know for the managers and employees because it helps to understand why some people feel more comfortable to work in particular types of organisation. It is also helpful for managers as they analyse the importance of structure in building the organisational culture.
Finally, Hofstede’s cultural dimensions theory is not similar to the theories of William Schneider or Charles Handy; however it is very useful for managers because it focuses on the differences between national cultures; this gets more importance in the modern globalised world (DesAutels et al., 2015). It helps to analyse the differences between the national cultures based on the level of power distance (value of equality and democracy), individualism, uncertainty avoidance (tolerance for ambiguity), masculinity (desire for achievement vs. comfort), and long-term orientation (ibid). Such theory is very useful for large multinational organisations or those who have to work closely with foreign partners.
In conclusion, the essay has demonstrated that the topic of culture is crucial for both employees and managers. Becoming familiar with different models and theories may be helpful in their career. The three theories can be regarded as different and similar at the same time, as two of them have dichotomies, two have the typology with four major cultures;, all can be very useful if applied properly.
References
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