Organizational Culture: Types and Functions

The practices, principles, policies and values of an organization form its culture. The culture of an organization decides the way employees behave amongst themselves as well as the people outside the organization.

Types of organization culture

1. Normative Culture

In such a culture, the norms and procedures of the organization are predefined and the rules and regulations are set as per the existing guidelines. The employees behave in an ideal way and strictly adhere to the policies of the organization. No employee dares to break the rules and sticks to the already laid policies.

2. Pragmatic Culture

In a pragmatic culture, more emphasis is placed on the clients and the external parties. Customer satisfaction is the main motive of the employees in a pragmatic culture. Such organizations treat their clients as Gods and do not follow any set rules. Every employee strives hard to satisfy his clients to expect maximum business from their side.

3. Academy Culture

Organizations following academy culture hire skilled individuals. The roles and responsibilities are delegated according to the back ground, educational qualification and work experience of the employees. Organizations following academy culture are very particular about training the existing employees. They ensure that various training programmes are being conducted at the workplace to hone the skills of the employees. The management makes sincere efforts to upgrade the knowledge of the employees to improve their professional competence. The employees in an academy culture stick to the organization for a longer duration and also grow within it. Educational institutions, universities, hospitals practice such a culture.

4. Baseball team Culture

A baseball team culture considers the employees as the most treasured possession of the organization. The employees are the true assets of the organization who have a major role in its successful functioning. In such a culture, the individuals always have an upper edge and they do not bother much about their organization. Advertising agencies, event management companies, financial institutions follow such a culture.

5. Club Culture

Organizations following a club culture are very particular about the employees they recruit. The individuals are hired as per their specialization, educational qualification and interests. Each one does what he is best at. The high potential employees are promoted suitably and appraisals are a regular feature of such a culture.

6. Fortress Culture

There are certain organizations where the employees are not very sure about their career and longevity. Such organizations follow fortress culture. The employees are terminated if the organization is not performing well. Individuals suffer the most when the organization is at a loss. Stock broking industries follow such a culture.

7. Tough Guy Culture

In a tough guy culture, feedbacks are essential. The performance of the employees is reviewed from time to time and their work is thoroughly monitored. Team managers are appointed to discuss queries with the team members and guide them whenever required. The employees are under constant watch in such a culture.

8. Bet your company Culture

Organizations which follow bet your company culture take decisions which involve a huge amount of risk and the consequences are also unforeseen. The principles and policies of such an organization are formulated to address sensitive issues and it takes time to get the results.

9. Process Culture

As the name suggests the employees in such a culture adhere to the processes and procedures of the organization. Feedbacks and performance reviews do not matter much in such organizations. The employees abide by the rules and regulations and work according to the ideologies of the workplace. All government organizations follow such a culture.

Functions of Organizational Culture

1. The first function of culture is that it has a Boundary-Defining role which means that culture helps to create distinctions between one organization and others.
2. Culture helps to create a sense of identity for the organization members.
3. Culture facilitates the generation of commitment to something larger the than one’s individual self interest. Culture encourages the members of the organization to give priority to organizational interests over and above their personal interests.
4. Culture enhances the Social System Stability. Culture is also known as the social glue that helps to hold the organization together by providing appropriate standards for what employees should say and do. It provides a list of social do’s and don’ts for the employees.
5. Culture finally, serves as a sense making and control mechanism that guides and shapes the attitudes and behaviours of employees. This function is particularly important in the study of organizational behaviour. Every organization has its own set of assumptions, understandings and implicit rules to guide the day to day behaviour of the employees. The newcomers will be accepted as fully fledged members of the organization only when they learn to obey these rules. Conformity to the rules is generally the primary basis for rewards and promotions.

Thus, culture is beneficial to the organization as it enhances organizational commitment and increases the consistency of employee behaviour. Culture is beneficial to the employee also as it reduces ambiguity. Employees become very clear as to how things are to be done and what is more important for the organization.