Two Dimensions and Four CulturesBased on the HBR Article – “What Holds a Modern Company Together”By Rob Goffee and Gareth Jones : ©enablepod 1 Two Dimensions and Four CulturesBased on the HBR Article – “What Holds a Modern Company Together”By Rob Goffee and Gareth Jones
Corporate Culture : Corporate Culture ©enablepod 2
Corporate Culture and Its Importance : Corporate Culture and Its Importance Culture keeps the organization together against difficult pressures for disintegration like – decentralization, delayering etc
At the same time traditional methods – hierarchies and control systems - to keep the organization together are proving costly
Culture bolsters the company’s identity as one organization.
It provides values, direction and purpose ©enablepod 3
Corporate Culture and Its Importance : Corporate Culture and Its Importance Culture is community. It is an outcome of how people relate with each other.
Communities exist at the place of work as much as they do outside it.
Business communities can be understood through Sociology, which divides the human relations into two distinct dimensions
Sociability – Measure of sincere friendliness among the members
Solidarity – Measure of communities ability to pursue shared objectives quickly and effectively regardless of personal ties ©enablepod 4
Four Cultures : Four Cultures ©enablepod 5
Four Cultures : Four Cultures Based on the dimensions of Sociability and Solidarity, culture at any organization can be divided into four types ©enablepod 6 Sociability Solidarity HI Lo Lo HI
Networked OrganizationHigh Sociability and Low SolidarityCharacteristics : Networked OrganizationHigh Sociability and Low SolidarityCharacteristics The rituals of such organizations are highly noticeable to the outsiders
People are very friendly with each other. They celebrate personal occasions like Birthdays etc.They call each other by nick names
Hierarchy exists but there are informal ways
Drawbacks:
because of low level of solidarity it is difficult to bring different teams and departments together
Usually the networked organization is political and individuals spend much of their time in pursuing personal agendas ©enablepod 7
Networked OrganizationBusiness Conditions where It works well : Networked OrganizationBusiness Conditions where It works well When corporate strategies have long time-frame. In absence of immediate goals and tight time-lines, sociability helps the team work together.
When local knowledge is critical to success. Solidarity is no hindrance because success comes from familiarity with the home-turf. Even if different units do not collaborate, there is no loss.
Similar to the previous one, when the aggregate success depends on the local successes, sociability pays and low solidarity doesn’t come in the way. ©enablepod 8
Mercenary OrganizationHigh Solidarity and Low SociabilityCharacteristics : Mercenary OrganizationHigh Solidarity and Low SociabilityCharacteristics All communication based on business matters
Ability to respond quickly and cohesively to perceived threats or opportunities
Clear separation of work and social life. Most members prefer work over private life.
Intolerance towards poor performance. Highly competitive.
Drawbacks:
People are busy and cooperation, sharing ideas is looked down at as a distraction ©enablepod 9
Mercenary OrganizationBusiness Conditions where It works well : Mercenary OrganizationBusiness Conditions where It works well In conditions of fast and rampant change
On attainment of economies of scale or competitive advantage
When goals are clear and measurable
When the nature of competition is clear ©enablepod 10
Fragmented OrganizationLow Solidarity and Low SociabilityCharacteristics : Fragmented OrganizationLow Solidarity and Low SociabilityCharacteristics Very low levels of organizational memberships is visible
People don’t seem to be affectively connected. They are secretive and not inclined to friendships.
Members don’t agree on organizational goals, success factors etc.
Drawbacks:
Ineffective in attaining goals
People don’t feel commitment towards the organization ©enablepod 11
Fragmented OrganizationBusiness Conditions where It works well : Fragmented OrganizationBusiness Conditions where It works well When there is little to no interdependence in work. Example – a firm of tax lawyers working for different clients.
When significant innovation is due to individual contributors and not teams.
When inputs play a vital role in output and processes are not that vital.
When there are few learning opportunities between individual members. ©enablepod 12
Communal OrganizationHigh Solidarity and High SociabilityCharacteristics : Communal OrganizationHigh Solidarity and High SociabilityCharacteristics Usually found in mature organizations. But sometimes seen in start-ups too
People have a heightened sense of organizational identity. They even link there identity with the corporate identity.
There are several social event throughout.
There is an equitable distribution of risk and reward. They are fair and just.
Drawbacks:
This is mostly an unattainable and inappropriate ideal in business context.
Sustenance is difficult ©enablepod 13
Communal OrganizationBusiness Conditions where It works well : Communal OrganizationBusiness Conditions where It works well When innovation requires elaborate teamwork and collaboration.
When there are real synergies among units and real opportunities to learn from each other exist.
When strategies are more long term than short term.
When business environment is dynamic and complex. ©enablepod 14
Slide 15 : ©enablepod 15 Thank You Enabling People and Organization Development
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