Organizational Culture: Dominant, Sub, and Types

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Dominant vs. Subculture in Organizations

Organizational culture is the shared perception held by its members. A dominant culture reflects the core values of the majority. Subcultures develop in larger organizations, reflecting common issues or experiences within specific groups or departments. Subcultures include the dominant culture's core values, plus unique values specific to their department. If organizations were only composed of subcultures, the power of organizational culture would be diminished. The 'shared meaning' aspect of culture is what makes it a powerful tool for shaping behavior.

Characteristics of a Strong Culture

A strong culture directly impacts organizational outcomes due to high agreement on what the organization represents. This unity builds cohesiveness, loyalty, meaning, and commitment. For example, high cultural consensus and intensity around adaptability can lead to gains in net income, revenue, and cash flow. Studies show that culture strength is linked to financial outcomes when there is a strong mission and high employee involvement.

Organizational Culture Frameworks: Clan, Adhocracy, Market, and Hierarchy

Organizations can be grouped into four culture types, each with its own assumptions, beliefs, values, and effectiveness criteria:

1. The Clan Culture

Based on human affiliation. Employees value attachment, collaboration, trust, and support.

2. The Adhocracy Culture

Based on change. Employees value growth, variety, attention to detail, stimulation, and autonomy.

3. The Market Culture

Based on achievement. Employees value communication, competence, and competition.

4. The Hierarchy Culture

Based on stability. Employees value communication, formalization, and routine.

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