Towards an innovative classification - grouping of variables that compose organizational culture
THEODOROS STAVRINOUDIS
Department of Business Administration, University of the Aegean, Chios, Greece
CHRISTOS KAKAROUGKAS
Department of Business Administration, University of the Aegean, Athens, Greece
Abstract
Through the thorough content analysis of the theories of: Handy (1976), Hofstede (1984), Cooke (1988), Goffee & Jones (1998), Deal & Kennedy (2000), Cameron & Quinn (2011), Yaakov & Shlomo Yedidia (2012), Yahyagil (2015) and Bavik (2016) regarding the types of organizational culture, the researchers concluded that the culture of an organization is determined by seventeen different groups of elements, which formed a seven-grade classification ladder. This classification ladder reflects the extent to which each group of elements is considered significant or not in determining organizational culture by each one of the above-mentioned authors/ researchers. Particularly, the grouped elements incorporated in this seven-grade classification ladder according to how many of the above authors/ researchers refer to this group of elements. It was found that the groups of elements named: change and power, hierarchy and structure are the most important in determining organizational culture, since they are reported by a total of eight out of nine authors/ researchers. While the group of elements named: vision and goal setting is considered the least important since it is only mentioned by two main authors.
1 INTRODUCTION
The literature review revealed numerous researchers and authors (Fletcher & Jones, 1992; Panayotopoulou, Bourantas & Papalexandris, 2003; Vilkinas & Cartan, 2006; Marlen, 2010; Chen, 2010; Cameron & Quinn, 2011; Yahyagil, 2015; Bavik, 2016 and others) who seek to classify the different types of organizational culture, using specific elements. The analysis of the different theories regarding the types of culture, in combination with the codification of the elements of organizational culture will lead to a deeper understanding of the concept of culture within an organization, as well as to the definition of specific elements that define organizational culture. Based on the above, on the near future a model will be created which will measure the role as well as the extent to which the reward systems affect the processes of change of organizational culture in five-star hotels.
2 METHODOLOGY
The present manuscript is divided into three sections. The first section presents in a concise manner the main categories of elements that constitute organizational culture in three levels (shell, mantle and core). In the second section the classification of the different components of organizational culture is performed, according to the findings of the first section as well as on the way those components are presented through the different theories regarding the types of organizational culture. This was conducted through the combination of similar or related concepts, in accordance with the spirit of: Handy (1976), Wilkins & Ouchi (1983), Hofstede (1984), Cooke (1988), Cooke & Szumal (1993), Bignardi (1996), Goffee & Jones (1998), Deal & Kennedy (2000), Harris & de Chernatony (2001), Sοrensen, (2002), Lewis (2002), Melé (2003), Lok & Crawford (2004), Denison, Lief & Ward (2004), Dowton, (2005), Balthazard, Cooke & Potter (2006) Powell (2006), Marlen (2010), Minkov & Hofstede (2011), Cameron & Quinn (2011), Yaakov & Shlomo Yedidia (2012), Bolman & Deal (2013), Klein, Wallis & Cooke (2013) and Venaik et al (2013). In the third section, based on the classification of the components of organizational culture, the researchers proceeded to the ranking of the classified elements of organizational culture. This ranking was based on the extent that the nine most relevant authors/ researchers (Handy, 1976; Hofstede, 1984; Cooke, 1988; Goffee & Jones, 1998; Deal & Kennedy, 2000; Cameron & Quinn, 2011; Yaakov & Shlomo Yedidia, 2012; Yahyagil, 2015 and Bavik 2016) refer or not in each separate component of organizational culture. For example, the concept of “change” as an element of organizational culture is referred by eight out of nine relevant authors/ researchers, while the concept of “risk/ innovation” is referred by five out of nine relevant authors/ researchers. It is important to mention that from the study and the classification of the international literature emerged that, many of the elements of organizational culture in their various manifestations are treated simultaneously as elements of the surface, the mantle and the core by the same relevant author/ researcher. In that case, the recording of the relevant author/ researcher is unique, i.e., the name of an author/ researcher cannot be counted twice in the definition of the final classification.
3 ORGANIZATIONAL CULTURE
The theoretical approaches of Kilman, Saxton & Serpa (1985), Kotter & Heskett (2011), Johnson, Scholes & Whittington (2007) and Schein (2010) agree that the elements that constitute organizational culture are displayed at different levels of depth and degree of visibility to the observer within an organization. The authors, in the following figure, present the summary of the above findings.
Figure 1, The elements of organizational culture
Source: Stavrinoudis & Kakarougkas, 2016
4 CLASSIFICATION OF THE ELEMENTS OF THE ORGANIZATIONAL CULTURE, ACCORDING TO THE THEORIES OF ORGANIZATIONAL CULTURE TYPES
Table 1 presents and classifies the different elements composing the organizational culture in accordance with the theoretical framework of: Handy (1976), Hofstede (1984), Cooke (1988), Goffee & Jones (1998), Deal & Kennedy (2000), Cameron & Quinn (2011), Yaakov & Shlomo Yedidia (2012), Yahyagil (2015) and Bavik (2016). The classification of the different elements of organizational culture will be completed with the development of Figure 1.
Table 1. Classification of the elements of the organizational culture
|
Organizational culture elements by: |
|
||
|
Handy (1976): Four Types of Culture
(Bignardi, 1996; Lewis, 2002; Bolman & Deal, 2013) |
Core elements:
4. Person |
Mantle elements:
|
Shell elements:
|
|
Hofstede (1984): Culture Dimensions
(Powell, 2006; Minkov & Hofstede 2011; Venaik et al, 2013) |
Key elements (Core & Mantle):
|
Shell elements:
|
|
|
Cooke (1988): Organizational Culture Inventory
(Cooke & Szumal, 1993; Balthazard, Cooke & Potter, 2006; Klein, Wallis & Cooke, 2013) |
Core elements:
|
Mantle elements:
|
Shell elements:
|
|
Goffee & Jones (1998): Corporate Culture Framework
(Melé, 2003; Lok & Crawford, 2004; Dowton, 2005) |
Core elements:
|
Mantle elements:
|
Shell elements:
|
|
Deal & Kennedy (2000): Corporate Tribes Culture Model
(Harris & de Chernatony, 2001; Sοrensen, 2002; Denison, Lief & Ward, 2004) |
Core elements:
|
Mantle elements:
|
Shell elements:
|
|
Cameron & Quinn (2011): Competing Values Framework
(Wilkins & Ouchi, 1983; Marlen, 2010) |
Core elements:
|
Mantle elements: 1. Dominant organizational features 2. Leader Style 3. Ties between members 4. Strategic focus
Forming: First dimension: 1. Flexibility 2. Judgment 3. Dynamism 4. Stability 5. Class 6. Control Second dimension:
|
Shell elements: 1. Exchange of information 2. Guidance from a leading figure 3. Security 4. Teamwork (Cooperation vs Competition) 5. Talent Management 6. Empowerment 7. Interpersonal relations 8. Participatory decision making 9. Innovation 10.Creativity 11. Vision for the Future 12. Development 13. Entrepreneurship14. External support 15. Acquisition of resources 16. Competitiveness 17. Change (Fast/ Slow) 18. Determination 19. Productivity 20. Clear target 21. Guidance through obstacles 22. Efficacy/ achievement 23. Routine and predictable procedures 24. Construction system 25. Documentation 26. Evaluation and assessment 27. Collection and control procedures 28. Stability 29. Improved efficiency and continuity |
|
Yaakov & Shlomo Yedidia (2012): The Use of Corporate Culture Analysis on Mergers Acquisitions Process |
Key elements (Core & Mantle) Defining dimensions and perceptions:
|
Shell elements:
|
|
|
Yahyagil (2015): A Typology of Culture in Organizational Behavior |
Key elements (Core, Mantle & Shell)
|
||
|
Bavik (2016): Organizational Culture in the Hospitality Industry |
Nine dimensions determining the organizational culture of a hotel at all levels (Core, Mantle & Shell)
|
||
5 Classification of the components of the organizational culture
Subsequently based on the above, Table 2, Classification of elements that compose organizational culture was formed.
Table 2. Classification of elements that compose organizational culture
|
1st Rank: Change (Referred to 8 out of 9)
|
|
1st Rank: Power/ Hierarchy/ Structure (Referred to 8 out of 9)
|
|
2nd Rank: Individualism (Referred to 7 out of 9)
|
|
2nd Rank: Teamwork (Referred to 7 out of 9)
|
|
2nd Rank: Bureaucracy/ Rules (Referred to 7 out of 9)
|
|
3rd Rank: Result/ Work execution (Referred to 6 out of 9)
|
|
4th Rank: Risk/ Innovation (Referred to 5 out of 9)
|
|
4th Rank: Sociability/ Extraversion (Referred to 5 out of 9)
|
|
4th Rank: Communication (Referred to 5 out of 9) S- Goffee & Jones (1998) and S- M/ C- Bavik (2016)
Μ/ C- Yaakov & Shlomo Yedidia (2012)
|
|
5th Rank: Human Resource Management (Referred to 4 out of 9)
|
|
5th Rank: Work environment (Referred to 4 out of 9)
|
|
6th Rank: Leading figure (Referred to 3 out of 9) Μ- Handy (1976)
|
|
6th Rank: Programming (Referred to 3 out of 9)
|
|
6th Rank: Strategy (Referred to 3 out of 9)
|
|
6th Rank: Entrepreneurship (Referred to 3 out of 9) S- Handy (1976) S- Cameron & Quinn (2011) Mercenary culture C- Goffee & Jones (1998) |
|
6th Rank: Desires/ Impulses/ Rewards (Referred to 3 out of 9)
|
|
7th Rank: Vision/ Goal setting (Referred to 2 out of 9)
|
|
Items who cannot be grouped and are not classified Shell elements: 1. Age of the organization, Goffee & Jones (1998) 2. Development, Cameron & Quinn (2011) Core elements: 1. Constructivism 2. Passive/ Defensive 3. Aggressive/ Defensive Cooke (1988) 4 Work hard/ play hard culture 5. Masculinity culture 6. Bet the company culture Deal & Kennedy (2000) 7. Culture type “clan” 8. Culture type “market” Cameron & Quinn (2011) |
S= Shell, M= Mantle and C= Core
- Conclusions- Practical and scientific implications
From the literature review and the study of Table 2, which was based on the content analysis of the theories of: Handy, 1976; Hofstede, 1984; Cooke, 1988; Goffee & Jones, 1998; Deal & Kennedy, 2000; Cameron & Quinn, 2011; Yaakov & Shlomo Yedidia, 2012; Yahyagil, 2015 and Bavik 2016 the following findings are arising. The culture of an organization is determined by seventeen groups of distinct elements (variables). Each group of elements can be integrated into a seven-grade rank according to the number of authors/ researchers mentioning this group of elements in their research- scientific papers. This seven-grade rank reflects the extent to which each group of elements is considered significant or not by each author/ researcher in the determination of the organizational culture. Resulting that the group of elements that are referred the most by the nine relevant authors are the most important.
For example, the group of elements called “change” is considered very important in shaping organizational culture since it is mentioned by eight out of nine relevant authors/ researchers. While the group of elements called “vision/ goal setting” is considered less important, it is mentioned by two out of nine relevant authors/ researchers. Specifically, the first rank is composed by the groups of elements named: change and power/ hierarchy/ structure. The second rank is composed by the groups of elements named: individualism, teamwork, and bureaucracy/ rules. The third rank is composed by the groups of elements named: outcome/ project performance. The fourth rank is composed by the groups of elements named: risk/ innovation, sociability/ extraversion and communication. The fifth rank is composed by the groups of elements named: human resources management and working environment. The sixth rank is composed by the groups of elements named: leading figure, planning, strategy, entrepreneurship and desires/ impulses/ reward. The seventh rank is composed by the groups of elements named: vision/ goal setting.
The above findings lead to conclusions some of which were expected, while others were controversial. Moreover, the most important of these conclusions will be presented. The element of “change” in the sense of: degree of acceptance or not, flexibility of the organization and size of change (when it happens) is considered the most important element determining organizational culture. This finding was expected since Werkman (2009), Schein (2010) and Van de Ven & Sun (2011) support that modern organizations must show great adaptability to survive in a highly competitive environment. Further to the above conclusion, most relevant authors show a clear preference to the “formal/ revolutionary” direction of change (Stavrinoudis & Kakarougkas, 2016) since power, authority, hierarchy and organizational structure are fundamental elements of the specific direction, belonging to the first rank next to the element of “change”. Furthermore, the elements of teamwork and individualism holding the second position of this classification are mutually contradicting one another. Specifically, “teamwork” is in convergence with the concept of “change” as a component of organizational culture since it promotes and supports change (Marks & Mirvis, 2011; Weick, 2011 and Fortado & Fadil, 2012). In contrast individualism as a component of organizational culture constitutes the main obstacle to change (Macadam, 1996; Rashid, Sambasivan & Rahman, 2004 and Carnal, 2007). Finally, the most controversial finding is that the grouped element of “vision/ goal setting” occupies the last place of the ranking. Since, this finding come in contrast to the “hybrid” and “informal/ evolutionary” direction of change, who consider the existence of a positive vision for the future crucial for the successful implementation of cultural change (Stavrinoudis & Kakarougkas, 2016).
The scientific and practical value of this manuscript is based on the fact that it is adding an original and innovative classification- grouping of variables that formulate and define organizational culture. Furthermore, the conclusions of this manuscript can be a step for further study on the culture of organizations. Along the same lines, the authors intend, in the near future, to carry out a primary research on the change of organizational culture to luxury hotels throughout Greece.
REFERENCES
Balthazard, P. A., Cooke, R. A. & Potter, R. E., (2006), "Dysfunctional culture, dysfunctional organization: Capturing the behavioral norms that form organizational culture and drive performance", Journal of Managerial Psychology, 21 (8), pp.709 - 732.
Bavik, A. (2016), Identification of Organizational Culture in the Hospitality Industry, in Metin Kozak, Nazmi Kozak (ed.) Tourism and Hospitality Management (Advances in Culture, Tourism and Hospitality Research, Volume 12) Emerald Group Publishing Limited, pp.197 – 210
Bignardi, G. E., (1996), "Cultural conflict in a bacteriology department: Apollo v. Athena", Journal of Management in Medicine, 10 (3), pp.49 - 58.
Bolman, L. G. & Deal, T. E., (2013), Reframing Organizations: Artistry, Choice, and Leadership, USA:John Wiley & Sons.
Cameron, K. S. & Quinn, R. E. (2011), Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework, U.S.A.: John Wiley & Sons.
Carnall C. A. (2007). Managing Change in Organisations. 5th ed. Pearson Education: UK.
Cooke, R., (1988), “Behavioral Norms and Expectations: A Quantitative Approach to the Assessment of Organizational Culture”, Group Organization Management, 13 (3) p.p. 245-273.
Cooke, R. & Szumal J., (1993), “Measuring normative beliefs and shared behavioral expectations in organizations: the reliability and validity of the organizational culture inventory”, Psychological reports: volume, 72 (1), p.p. 1299-1330.
Chen A. (2010), “Culture and compensation—unpicking the intricate relationship between reward and organizational culture”, Thunderbird International Business Review, 52 (3), p.p. 189- 202.
Deal, T. E. & Kennedy, A. A. (2000), Corporate Cultures: The Rites and Rituals of Corporate Life, U.S.A.: Perseus Books.
Denison, D., Lief, C., & Ward J. L., (2004), “Culture in Family-Owned Enterprises: Recognizing and Leveraging Unique Strengths”, Family Business Review, 17 (1), pp. 61- 70.
Dowton, S. B., (2005), “Imperatives in medical education and training in response to demands for a sustainable workforce”, The medical journal of Australia, 183 (11/12), pp. 595- 598.
Fletcher, B. & Jones, F, (1992) "Measuring Organizational Culture: The Cultural Audit", Managerial Auditing Journal, 7 (6), pp.30 - 36.
Fortado, B., & Fadil, P. (2012), The four faces of organizational culture.Competitiveness Review: an international business journal, 22(4), pp. 283-298.
Goffee, R. & Jones, G. (1998), The Character of a Corporation: How Your Company's Culture Can Make or Break Your Business, U.S.A.: HarperCollins.
Handy, C. B., (1976), Understanding organizations, UK: Oxford University Press.
Harris, F. & de Chernatony, L., (2001), "Corporate branding and corporate brand performance", European Journal of Marketing, 35 (¾), pp.441 - 456.
Hofstede, G., (1984), “Hofstede's Culture Dimensions: An Independent Validation Using Rokeach's Value Survey”, Journal of Cross-Cultural Psychology, 15 (1), pp. 417- 433.
Johnson, G., Scholes, K., Whittington, R. (2007), Exploring Corporate Strategy, UK: Pearson Education.
Kilmann R. H. and Saxton M. J. and Serpa R. (1985) “Five Key Issues in Understanding and Changing Culture”. In Kilmann R. H. and Saxton M. J. and Serpa R. (eds) Gaining Control of the Corporate Culture. Jossey-Bass Publishers: London.
Klein A. S., Wallis, J., & Cooke, R. A., (2013), “The impact of leadership styles on organizational culture and firm effectiveness: An empirical study”, Journal of Management & Organization, 19 1, pp. 241-254.
Kotter, J.P. & Heskett, J L (1992), Corporate Culture and Performance, New York: The Free Press.
Lewis, D., (2002), "Five years on – the organizational culture saga revisited", Leadership & Organization Development Journal, 23 (5), pp.280 – 287.
Lok, P. & Crawford, J., (2004), "The effect of organisational culture and leadership style on job satisfaction and organisational commitment: A cross-national comparison", Journal of Management Development, 23 (4), pp.321 – 338.
Macadam, C. (1996), Addressing the barriers of managing change. Management Development Review. 9 (3), pp. 38- 40.
Marks, M.L., & Mirvis, P.H. (2011), A framework for the human resources role in managing culture in mergers and acquisitions. Human Resource Management, 50(6), pp. 859-877.
Marlen, A. (2010), “Stakeholder Dialogues for Sustaining Cultural Change”, International Studies of Management & Organization, 40 (3), pp. 61.
Melé, D., (2003), “Organizational Humanizing Cultures: Do They Generate Social Capital?”, Journal of Business Ethics, 45 (1- 2). pp. 3- 14.
Minkov, M. & Hofstede, G., (2011), "The evolution of Hofstede's doctrine", Cross Cultural Management: An International Journal, 18 (1), pp.10- 20.
Panayotopoulou, L., Bourantas, D. & Papalexandris, N. (2003), “Strategic human resource management and its effects on firm performance: an implementation of the competing values framework”, International Journal of Human Resource management, 14 (4), pp. 680-699.
Powell, S. Interview of (2006) "Geert Hofstede: challenges of cultural diversity", Human Resource Management International Digest, 14 (3), p.p.12 - 15.
Rashid, Z. A, Sambasivan M. & Rahman A. A. (2004), The influence of organizational culture on attitudes toward organizational change. Leadership & Organization Development Journal. 25 (2), pp. 161- 179.
Schein E. H. (2010), Organizational Culture and Leadership. 4th ed. Jossey-Bass: San Francisco.
Sørensen, J. B. (2002), The strength of corporate culture and the reliability of firm performance. Administrative science quarterly, 47(1), 70-91.
Stavrinoudis & Kakarougkas, (2016), Weighting and evaluating the change of organizational culture in times of crisis. The case of luxury hotels in Athens, presented at making an impact: creating constructive conversations, Guilford, University of Surrey.
Stavrinoudis T. & Kakarougkas C. (2016) “A Theoretical Model of Weighting and Evaluating the Elements Defining the Change of Organizational Culture”, Conference Tourism, Culture and Heritage in a Smart Economy, Athens: IACuDit.
Van de Ven, A. H., & Sun, K. (2011). Breakdowns in implementing models of organization change. The Academy of Management Perspectives, 25(3), pp. 58-74.
Venaik, S., Zhu, Y. & Brewer, P., (2013), "Looking into the future: Hofstede long term orientation versus GLOBE future orientation", Cross Cultural Management: An International Journal, 20 (3), pp. 361 - 385.
Vilkinas, T. & Cartan, G. (2006), “The integrated competing values framework: its spatial configuration” Journal of Management Development, 25 (6), pp. 505-521.
Werkman, R. A. (2009), Understanding failure to change: a pluralistic approach and five patterns. Leadership & Organization Development Journal, 30(7), pp. 664-684.
Weick, K. E. (2011), Reflections: Change agents as change poets–on reconnecting flux and hunches. Journal of Change Management, 11(1), pp. 7-20.
Wilkins, A. L. & Ouchi, W. G. (1983), “Efficient Cultures: Exploring the Relationship Between Culture and Organizational Performance”, Administrative Science Quarterly, 28 (3), pp. 468- 481.
Yaakov W., & Shlomo Yedidia T., (2012), "Mergers and acquisitions process: the use of corporate culture analysis", Cross Cultural Management: An International Journal, 19 (3), pp.288 - 303.
Yahyagil, M. Y. (2015)," Constructing a typology of culture in organizational behavior ", International Journal of Organizational Analysis, 23 (4) pp. 506 – 527.
[1] S= Shell, M= Mantle and C= Core