ORGANIZATION

AL CULTURE
Prepared by: MARCHEL I. ABELLERA
What is Organizational Culture?
 Organizational culture, also known as
company culture, is defined as the shared values,
attitudes and practices that characterize an
organization. It’s the personality of your company,
and it plays a large part in your employees’ overall
satisfaction.
 Creating a winning organizational culture takes a
lot of time and effort — your culture must
accurately reflect your values and align with your
overall mission.
4 TYPES OF ORGANIZATIONAL
CULTURE
Types of Organizational Culture

 ClanCulture: emphasizes collaboration across

teams and a horizontal structure.
 Adhocracy Culture: allows individuals to share
ideas and encourages the company to take risks.
 Market
Culture: focuses on financial success and
how each employee contributes to revenue.
 Hierarchy Culture: emphasizes career paths and
provides clear managerial processes.
 1. CLAN CULTURE
• Clan culture is a  Primary
collaborative model usually Focus: Mentorship and
paired with horizontal teamwork.
company structure.
 Motto: “We’re all in this
• Communication is key to
together.”
this type of culture.
 About Clan Culture: A
• Companies can implement
clan culture by asking for clan culture is people-
direct feedback for focused in the sense that
employees and taking the company feels family-
action based on their like.
suggestions.
 Disadvantages of
Clan Culture:
Advantages of Clan
Culture:  A family-style
 Clan cultures boast corporate culture is
high rates of difficult to maintain
employee engagement as the company
, and happy employees grows. Plus, with a
make for happy horizontal
customers. Because of
leadership
its highly adaptable
environment, there’s a structure, day-to-
great possibility for day operations can
market growth within a seem cluttered and
clan culture. lacking direction.
 2. ADHOCRACY CULTURE
• Adhocracy culture puts a  Primary Focus: Risk-
focus on employees taking and innovation.
adapting and innovating.
 Motto: “Risk it to get the
• This culture helps
biscuit.”
companies take risks and
 About Adhocracy
invites individuals to
share their ideas. Culture: Adhocracy
cultures are rooted in
• Companies can
implement adhocracy innovation and
culture by hosting adaptability.
strategy and
brainstorming sessions.
 Advantages of Disadvantages of
Adhocracy Culture: Adhocracy Culture:
 An adhocracy culture  Risk is risk, so there’s
contributes to high always a chance that a
profit margins and new venture won’t pan
notoriety. Employees out and may even hurt
stay motivated with the your business.
goal of breaking the Adhocracy cultures can
mold. Plus, with a focus also foster competition
on creativity and new between employees as
ideas, professional the pressure to come
development up with new ideas
opportunities are easy mounts.
to justify.
 3. MARKET CULTURE
• Companies with a
 Primary
market culture are
focused on financial Focus: Competition and
success and meeting growth.
goals and targets.  Motto: “We’re in it to win
• Each employee it.”
working within  About Market
market culture plays Culture: Market culture
a distinct part in prioritizes profitability.
reaching the
company’s larger
goals.
Advantages of Market Disadvantages of Market
Culture: Culture:
  On the other hand,
Companies that boast
market cultures are because there’s a number
profitable and tied to every decision,
project and position within
successful. Because
the company, it can be
the entire organization difficult for employees to
is externally focused, meaningfully engage with
there’s a key objective their work and live out
employees can get their professional
behind and work purpose. There is also risk
toward. for burnout in this
aggressive and fast-paced
environment.
 4. HIERARCHY CULTURE
• Companies with  Primary Focus: Structure
hierarchy culture and stability.
have a clear chain of  Motto: “Get it done right.”
command and
 About Hierarchy
detailed career paths
within the Culture: Companies with
organization. hierarchy cultures adhere
to the traditional corporate
• These companies
structure.
tend to avoid risk
and focus on internal
organization.
 Advantages of
Disadvantages of
Hierarchy Culture: Hierarchy Culture:
 With internal  The rigidity of hierarchy
organization as a cultures leaves little
priority, hierarchy room for creativity,
cultures have clear making these
direction. There are companies relatively
well-defined slow to adapt to the
changing marketplace.
processes that cater
The company takes
to the company’s precedence over the
main objectives. individual, which doesn’t
necessarily encourage
employee feedback.
ORGANIZATIONAL
CLIMATE
Prepared by: MARCHEL I. ABELLERA
What is organizational
climate?
 Organizational
climate refers to an employee’s
long-lasting perception of the working
environment and culture of the business they
work for.
 Thisis reflected as a set of characteristics and
features perceived by employees.
 These influence employees’ behavior at work
across various dimensions such as relationships,
autonomy, and organizational structure.
DIMENSIONS OF
ORGANIZATIONAL CLIMATE
There are a variety of approaches to defining the
dimensions of organizational climate in research.
According to Hassanpour et al (2019), these
include:
• Structural dimensions – Referring to
organizational structure
• Interactive dimensions – How members of an
organization interact with each other
• Perceptual dimensions – How individuals
perceive the climate within an organization
IMPACT OF ORGANIZATIONAL
CLIMATE
• It can operate as a constraint system
• It helps employees form a perception of
the organization
• It affects leader efficacy
• It influences employee happiness and
productivity
• It helps a business achieve its long-term
goals
TYPES OF ORGANIZATIONAL
CLIMATE
An organizational culture that has a core set of
People-oriented
values that focus predominantly on caring for its
climate
employees and their results.
An organizational culture providing a set of rules
Rule-oriented and structure and places high importance on
climate following these rules and attention to detail from
everyone.
An organizational culture that consistently
Innovation- develops and introduces new ways of working
oriented climate and processes (and encourages employees to do
the same) to achieve innovative results.
An organizational culture that places preference
Goal-oriented
on values and refining details of processes to
climate
achieve the desired result.
HOW TO IMPROVE
ORGANIZATIONAL CLIMATE
1. Determine the state of the current
organizational climate
2. Translate company values and goals into
desired behaviors
3. Improve the working environment
4. Strengthen employee recognition
5. Advance your leadership
6. Promote autonomy
7. Focus on inclusion and belonging
 In summary, while culture defines
the foundation of an organization’s
identity, climate is how employees
experience that identity day-to-day.
Both are critical to an organization's
success, as a positive climate, aligned
with a strong, clear culture, leads to
greater job satisfaction, productivity,
and overall success.
Thank you & God
bless!
References

 https://www.aihr.com/blog/organizational-climate/
 https://builtin.com/company-culture/types-of-organizational-culture