Unit 2 - Human Resource Management
2.5 - Organizational Culture
Organizational culture describes the shared values, beliefs, attitudes, customs, and ways of working that characterize an organization. It shapes how people interact, make decisions, and approach work, affecting both performance and employee satisfaction.
Types of Organizational Culture
| Type | Main Characteristics | Example/Notes |
|---|---|---|
| Power Culture | Centralized power; decisions made by a few leaders. Few rules, rapid change, high control. | Small startups, autocratic family businesses |
| Role Culture | Clearly defined roles, rules & hierarchy; bureaucracy. Stability, predictability, formal processes. | Government departments, banks, traditional corporates |
| Task Culture | Teams formed for projects; results-driven, adaptable; expertise valued over rank. | Consultancies, creative agencies, tech project teams |
| Person Culture | Focus on individual needs; loose structure, autonomy, knowledge-based. | Law firms, research institutes, universities |
| Entrepreneurial/Innovative Culture | Encourages new ideas, risk-taking, rapid change; flat hierarchy. | Startups, R&D-intense companies (Google, Tesla) |
| Support Culture | Emphasizes collaboration, trust, open communication, team spirit, and wellbeing. | Modern NGOs, Scandinavian firms, progressive orgs |
- Power Culture: Authority held by a few, quick responses but may lack participation.
- Role Culture: Clearly structured positions and responsibilities, reliable but sometimes inflexible.
- Task Culture: Teamwork and project orientation, fosters flexibility and creativity.
- Person Culture: Focused on individuals' knowledge/autonomy, suited for professionals.
- Entrepreneurial/Innovative Culture: Constant experimentation, value on new ideas.
- Support Culture: People-centered, prioritizes morale and inclusion.
Cultural Clashes in Organizations
Cultural clash occurs when two or more groups with different values, beliefs, or work practices come together in an organization, often during mergers, acquisitions, or major change. This can lead to misunderstandings, conflict, and reduced effectiveness if not managed well.
Common Causes of Cultural Clash
- Mergers & acquisitions: Different organizational cultures struggle to integrate.
- International expansion: National or regional culture differs from home culture.
- Leadership change: New management may bring a new style/values.
- Restructuring: Employees may resist new roles, rules, or priorities.
- Diversity & inclusion: Teams come from varied social, educational, or generational backgrounds.
Managing Cultural Clash:
- Open communication and regular feedback
- Respect and sensitivity to differing values and practices
- Training and integration activities (team building, workshops, orientation)
- Leadership modeling of the desired culture
- Celebrating cultural diversity as a strength
- Clear, shared vision and values for all staff
Key Takeaways
- Organizational culture determines “how things are done” and impacts business success, employee morale, and adaptability.
- Cultural clashes are common—especially in times of rapid change, growth, or when merging diverse groups.
- Strong, adaptive, and inclusive cultures help businesses thrive in a diverse and global marketplace.