If you Google “organizational culture” you’ll find an overwhelming number of different culture models based on effectiveness, risk, feedback and much more. Since this is a blog about culture, I thought I’d save you the trouble of sifting through all the different types by providing you with my favorite, The Competing Values Framework. This model is simple and effective because each culture type is categorized by the core values that are important to an organization. There are four culture types in this model: Clan, Adhocracy, Hierarchy, and Market.
As you read through the different culture types, think about your own values and how you fit into these cultures. It’s common to fit into more than one culture type, however one will always be dominant. You will find that many organizations are a blend of two types. For example, you can have a dominant culture of adhocracy where innovation is the most important value, but still work in a family like environment such as clan culture.
Four Types of Organizational Culture
Clan Culture
If you want a family like environment, then you’ve found your new home in clan culture. This culture focuses on creating a high morale environment through empowerment, team building, employee involvement and development. They believe that these strategies are the key to becoming an effective organization. It’s not uncommon for leaders of this culture to be viewed as mentors or even parent figures. The love doesn’t stop with the employees, because customer satisfaction is also at the top of the list. A great example of clan culture is Zappos. Number 7 of their core values says it all: “Build a Positive Team and Family Spirit”.

Adhocracy Culture
Most tech companies who strive to develop the next innovative product work in an adhocracy culture. This culture doesn’t have many rules because they allow their employees to have the freedom to be creative. These companies are successful because they focus on creating new standards and anticipating customer needs. Adhocracy breeds leaders who focus on innovative outputs and are agile enough to adapt to the frequent changes of their industry. Apple and Google would be examples of adhocracy culture because they allow employees to take initiative and experiment with new ideas.
Hierarchy Culture
Unlike adhocracy, hierarchy culture operates as a well oiled machine by following rules and standards. Every process in this environment is controlled to avoid errors and keep consistency. Leaders in this culture will monitor employee performance closely to ensure that services and products are high quality and rules are being met. You can find hierarchy cultures in the manufacturing industry, engineering firms, and fast food chains. McDonald’s for example, has each process in place to ensure that they provide fast service with consistent quality to each customer. Each employee has a designated function so that orders are fulfilled in the most efficient manner.


Market Culture
If competition gets your juices going and “sink or swim” is one of your motto’s then market culture is for you. This results oriented culture focuses on achieving measurable goals. You won’t find any hand holding here because all of the attention goes toward improving productivity, staying competitive, and customer preferences. Leaders will be hard drivers and will want a team that can produce results without too much coaching. You will find market cultures in sports teams and sales companies. AT&T is an example of market culture because they pride themselves on being highly competitive in their industry.

Now that you’ve reviewed the four organizational culture types, which culture or culture blend best suites you? Are you currently working in your ideal culture?
|
Clan |
Adhocracy |
Heirarchy |
Market |
| Orientation |
Collaborative |
Creative |
Controlling |
Competing |
| Leader Type |
Facilitator, Mentor, Team builder |
Innovator, Entrepreneur, Visionary |
Coordinator, Monitor, Organizer |
Hard driver, Competitor, Producer |
| Value Drivers |
Commitment, Communication, Development |
Innovative outputs, Transformation, Agility |
Efficiency, Timeliness, Consistency and uniformity |
Market share, Goal achievement, Profitability |
| Theory of Effectiveness |
Human development and participation produce effectiveness |
Innovativeness, vision, and new resources produce effectiveness |
Control and efficiency with capable processes produce effectiveness |
Aggressively competing and customer focus produce effectiveness |
| Quality Strategies |
Empowerment, Teambuilding, Employee involvement, Human resource development, Open communication |
Surprise and delight, Creating new standards, Anticipating needs, Continuous improvement, Finding creative solutions |
Error Detection, Measurement, Process Control, Systematic problem solving, Quality tools (fishbone diagrams, Pareto charting, variance plotting) |
Measuring customer preferences, Improving productivity, Creating external partnerships, Enhancing competitiveness, Involving customers and suppliers |
For more information on The Competing Values Framework reference these great resources:
Cameron, K. S., & Quinn, R. E. (1999). Diagnosing and changing organizational culture: Based on the competing values framework. Reading, MA: Addison-Wesley.
Quinn, R. E., & Rohrbaugh, J. (1983). A spatial model of effectiveness criteria: Towards a competing values approach to organizational analysis. Management Science, 29, 363–377
Quinn, R. E., & Rohrbaugh, J. (1981). A competing values approach to organizational effectiveness. Public Productivity Review, 5, 122–140.