IKEA: Understanding Competing Values Framework and Organizational Culture

Running head: IKEA 1
Ikea
Student Name
Institution

IKEA 2
Competing values framework was developed to help measure effectiveness of
organizational performance. The framework helps organization to choose the right culture that
will enable them to achieve their goals and growth objectives. Managers in various organizations
are able to understand different culture and make the necessary changes so as to achieve the
desired organization culture. The framework has two axis and one of the first axis is that
organization focuses on flexibility and discretion or control and stability (Cameron, 2011). The
other axis is that organization focuses on internal dynamics and employees or external dynamics,
customers and shareholders. The framework has four types of culture which are clan culture,
adhocracy culture, market culture and hierarchy culture.
Clan culture has a strong focus on internal focus and integration and values flexibility in
the operations of the organization. The driving force of the clan culture is collaboration. The
culture values employees in the organization and strives to ensure that employees are satisfied.
The organization spends a lot of resources developing employees and hiring the best talents in
the job market (Keskin, Akgün, Günsel, & İmamoğlu, 2008). The culture ensures that employees
are highly motivated and they are committed to their duties in the organization. Communication
and empowerment is key is ensuring the morale of the employees is kept high.
Adhocracy culture focuses on external aspects of the organization and flexibility. The
driving force of the culture is creating which is associated with innovation in the organization.
The organization responds fast to changes in the environment and adapts quickly to different
changes that occur due to environmental dynamics (Keskin, Akgün, Günsel, & İmamoğlu, 2008).
The decision making process in the organization under adhocracy culture is decentralized and
employees are involved in decision-making. Initiative is encouraged in the organization as

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employees are encouraged to take risks and to be innovative. The culture can be implemented in
startups, mature industries and constantly changing industries.
Market culture values stability and control and has a strong external focus. The culture is
driven by competition in the market segment. The firm a strong desire to deliver products and
services which satisfy customers and accomplish the set goals (Tharp, 2009). Customers and
profits come before employees’ satisfaction and development. The employees are also expected
to work hard and to adapt quickly to changes in the organization. The culture rewards hard work
and results delivery.
Hierarchy culture mainly focuses on internal dynamics and control and stability I order
for the company to run smoothly. The driving force of the culture is control as the organization
operates under structured environment that does not value flexibility which may lead to
unexpected risks in the organization (Abrahamian, 2013). Control mechanisms are implemented
in the organization and efficiency in the organization is achieved through consistency and
process control.
IKEA’s dominant culture is clan which focuses on internal aspects of the organization
and flexibility. IKEA promotes collaboration which is the driving force of the culture.
Collaboration enables employees to socialize with each other and this leads to sharing of ideas
which promote innovation in the organization. IKEA values include togetherness which helps to
bring people to work together under harmony (Stockdill, 2018). The firm has embraced
employee cohesion and the results are good as the firm experiences less conflicts in the
organization. The other value is that IKEA cares for people and that is the main reason why the
company spends a lot of resources in developing staff.