Organizational Culture: Theories, Models, and Types - Fall 2023

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ORGANIZATIONAL CULTURE
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Table of Contents
INTRODUCTION................................................................................................................... 4
CONCEPT OF ORGANIZATIONAL CULTURE................................................................5
THEORIES AND MODELS IN ORGANIZATIONAL CULTURE......................................7
Hofstede Cultural Dimensions Theory............................................................................7
Daniel Denison’s Model....................................................................................................8
Deal And Kennedy’s Cultural Model...............................................................................9
Edgar Schein’s Model Of Organizational Culture........................................................10
Charles Handy Model......................................................................................................11
TYPES OF ORGANIZATIONAL CULTURE....................................................................13
Constructive Culture........................................................................................................13
Passive/Defensive Culture.............................................................................................13
Aggressive/ Defensive Culture...................................................................................... 13
IMPORTANCE OF ORGANIZATIONAL CULTURE.......................................................15
FACTORS AFFECTING ORGANIZATIONAL CULTURE..............................................17
CONCLUSION..................................................................................................................... 19
REFERENCES.................................................................................................................... 20
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INTRODUCTION
As per the study of Grau and Moormann (2014), organizational culture has been
defined as the combination of the important assumptions which are being shared in
common form by every member of an organization. In similar to the above definition,
Hietschold et al(2014) have termed organizational culture as the combination of the
two basic terms values and beliefs. In which values are defined as the assumptions
which are forwarded by the leaders and are considered as ideal for the remaining
employees of an organization. On the other hand, beliefs are considered as the
assumptions defined over reality and experiences.
In contrast to this, Kroll (2015) defines organizational culture as the uniform
perception defined in an organization having a set of common characteristics. The
organizational culture is defined as the unique feature of every organization which
distinguishes every organization with another. It helps in integrating the groups or
individuals over the system of an organization.
Similar to this fact, Ahammad et al (2016) define the organization as the set of the
values and beliefs which helps in defining common ideas based over the aim of
accomplishing the ways to achieve the goals and objectives of an organization. Al-
Haddad (2015) agrees to this statement by adding that the assumptions made within
an organization are valid and justified as per the accomplishment of the defined set
of the activities. As per the viewpoints of
Kim (2014) organizational structure has been defined as the phenomenon which is
shared by the members of an organization and is operated consciously. The author
further states that successfully managed companies majorly have distinctive cultures
based on which an organization is made responsible for the implementation of the
relevant and effective set of strategies. According to Ahammad et al (2016), the
organizational culture of and every organization is defined to have a different culture
which influences the management team and employees to work efficiently in an
organization.
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CONCEPT OF ORGANIZATIONAL CULTURE
According to Jundt (2015.), organizational culture is defined as the combination of
the set of the values and behaviors which leads to the establishment of the unique
psychological and social environment within the business. In addition to this the
concept of the organizational culture in enhances the way of interactions among the
people. Along with this, knowledge is created concerning the implementation of the
effective set of the procedures and strategies over the working environment of the
organizations.
Figure 1: Country Analysis
Source: Ritz et al (2016)
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In opposite to this Saunila (2014.) elaborates the concept of organizational culture as
the collection of values, principles, and beliefs of organizational members. The
concept of the organizational culture is based over the product of the factors
including technology, marketing analysis, strategy, and national culture.
Figure 2: History of view over organizational behavior
Source: Ritz et al (2016)
Inkinen (2016) analyses that the concept of the organizational structure is based
over the shared assumptions which contribute to enlightening the behaviors of
employees defined in an organization. As per the analysis of Carlos Pinho (2014), it
has been found that the organizational culture affects the way of the interaction
among the people working in an organization. This may also affect the identity of the
employees defined within an organization.
It has been defined as the deepest level of the culture, beliefs, and assumptions
within which the real meaning of culture in terms of the organization has been
identified. Carlos Pinho (2014) believed that the set of values and beliefs included
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within the entire organizational culture would provide a set of responsibilities and
assumptions. Further, Beattie et al (2014) argued that in terms of considering the
assumptions and beliefs the critical evaluation of the behaviors of an employee
would affect the overall organizational culture of an organization adversely.
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THEORIES AND MODELS IN ORGANIZATIONAL CULTURE
Deery and Jago (2015) have determined that the research done over the
organizational culture has been determined over the decades to determine the
appropriate way of finding the effective set of the theories applied over the varying
set of the organizational cultures.
Paillé (2014) defines that there are various types of research models which are
applied over the organizational culture of the various organizations. There are many
research models which are identified by reviewing the set of the changes defined in
an organization.
Hofstede Cultural Dimensions Theory
According to the reviews defined by the Carasco-Saul et al (2015), it has been found
that in 1980, Hofstede analyzed the differences faced by the employees of the
various organizations in 50 different countries which constituted three regions of the
world. In addition to this Valmohammadi and Roshanzamir (2015) adds to the study
that Hofstede suggested the things affecting the issues faced by the cultural
differences by analyzing the national regions and cultural regions. It has been
evaluated that the Hofstede’s dimension includes the six basic dimensions upon
which the entire working of an organization is based concerning the natural cultures.
The first element is defined as the Power Distance Index (PDI) in which the degree
has been accepted by the less powerful members of the society and they expect that
the power is unequally distributed. This leads to the rise in the issue of inequalities
defined. Similar to this, the score of the power distance determines the acceptance
by society in terms of the unequal distribution of power.
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Figure 3: Hofstede's Cultural Dimensions
Source: Ritz et al., 2016
Valmohammadi and Roshanzamir (2015) determine the evaluation of the second
dimension defined by Hofstede’s as Individualism. It has been termed as the
strength of gathering different people of the community. In addition to this, the
analysis that the increase in score of the individualism indicates loose connections
and the society having the low score of individualism indicates that the people have
strong communication in between each other and have greater respect. It provides
the study and evaluation of the Hofstede’s third dimension named as Masculinity.
This term determines the set of opportunities provided to the man and woman in a
particular area. Along with this the fourth dimension oh Hofstede analyzed by
Thurlings et al (2015) has been termed as the uncertainty avoidance index (UAI). It
has been studied that this type of index establishes a relation between the degree of
anxiety defined by the society members in case of unknown or unstable situations. It
determines that the low score of the uncertainty indicates that the people are
encouraged for discovering their truth. As per the views of Govindan et al (2015) the
fifth dimension is termed as Long-term orientation. It determines the time duration up
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to which the society can follow the traditions and values. It provides the fact that then
country offering high LTO score delivers the social obligations with eliminating loss of
face. The last dimension of Hofstede’s is defined as Indulgence. It determines
freedom provided by the organization to the employees of having fun and enjoying
life.
Daniel Denison’s Model
As per the study of Thomas (2015), it was defined that there is a model made for the
organizational culture of an organization which is made by Daniel Denison in 1990.
In this model, the classification of an organization has been done on 4 major
dimensions which include mission, adaptability, consistency, and involvement. On
elaborating the above-defined dimensions it has been found that the mission of an
organization consists of defining vision, goals, objectives intent and strategic
direction of an organization.
Figure 4: Daniel Dennison’s Model
Source: Kroll, 2015
Lehnert (2015) defines another component has the combination of a set of factors
including organizational learning, customer focus, and way of creating change. In
contrast to this Kroll (2015) determines the fact that involvement in an organization
includes team orientation, ability, development, and empowerment. It illustrates that
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the consistency of an organization includes agreement, core values, and
coordination defined within an organization.
Deal And Kennedy’s Cultural Model
As per the study of Turner (2014), this model was developed in 1982 by Terrence
Deal and Allan Kennedy. The main motive behind the development of this model
was to incorporate the idea of the culture and corporate in one roof. According to a
similar study, four different types of cultures have been determined influenced by
marketing practices and cultural patterns. The first culture is defined as the tough-
guy, macho which includes the types of people who wish to take the risk and gets
rapid feedbacks based on their decisions. This type of culture has been enjoyed in
the organizations belonging to the sector of entertainment or sports. (De Medeiros
(2014) defines another type of culture classified as work hard/ play hard. In these
risks are taken by employees on their own and immediate feedback has been
received. The employees of this culture have a high energy level. The third culture
defined is a bet-your company in which the decisions are defined at high risk and
employees can wait for years about the feedbacks. Pettigrew (2014) examines that
this type of culture is mainly defined in the pharmaceutical industry. The last type of
culture defined is Process in which the feedback is slow along with having a low set
of risks. This type of culture is followed by retailers, banks, government
organizations, and insurance companies.
Figure 5: Deal and Kennedy
Source: Pettigrew, 2014
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Ritz et al (2016) analyzed that this type of model is applied in the organizations
where there needs to have an effective process of thinking based over the
workplace. It helps in shaping the overall structure and culture of an organization. It
can create a strong foundation for enjoyable and valuable work by encouraging and
creating a stable and cohesive culture. In contrast to this Omotayo (2015) identifies
the model of Deal and Kennedy’s has the type of model which enhances the overall
performance of an organization along with upbringing commitments and loyalty in
between the number of employees working in an organization.
Edgar Schein’s Model Of Organizational Culture
According to Lueg and Radlach (2016), the effective model over the organizational
culture was developed by Edgar Schein in which the set of the recommendations
were made concerning the evaluation of the external environment and ability to solve
the problems. The organizational culture was categorized in 3 different levels as per
the study was done over Schein model. The first component was defined as Artifacts
in which the characteristics of an organization can be viewed and felt easily by
individuals altogether. The artifact of an organization includes facilities, furniture, and
dress code defined in an organization. The second component of this model is
termed as Values which includes the attitude and behavior of employees defined
over an organization. D'Arcy and Greene (2014) evaluate that the values defined by
the employees of an organization affect the decision-making process of an entire
organization. The third component of this model is classified as the assumed values.
These are the set of beliefs and facts which are hidden but have an effect over the
working of an organization.
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Figure 6: Schein’s Culture Triangle
Source: D’Arcy and Greene, 2014
The appropriate implementation of the three major components being defined within
this model helps in determining apparent understanding of the paradoxical
organizational behavior and it also helps in evaluating the two major reasons for the
development of culture in an organization defined as internal and external
adaptations.
Charles Handy Model
As per the study of Govindan et al (2015), there has been another model which has
been defined over the organizational culture. This model was developed by Charles
handy and according to this, the model consists of four types of culture followed by
an organization. These include Power, Task Culture, Person culture, and role
culture. Among which power culture is defined as the type of culture in which powers
are defined in the hands of the selected people and they enjoy the special privileges
offered by an organization. In contrast to this, task culture has been defined as the
types of the culture within which teams are made among the employees to achieve
the defined target and resolve the problems faced in an organization.
Following this person culture in which employees are treated before the organization.
This type of culture decreases the overall profit generation ability of an organization.
The role culture is defined as the type of culture in which every employee of an
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