Various business management theorists have introduced models of the types of corporate culture because there is no one common theory of the different models of organizational culture. It is mainly because businesses are very different in the ways that they operate.
Organizational Culture Assessment Instrument (OCAI) was developed by Kim Cameron and Robert Quinn at the University of Michigan and has become a validated research method to assess organizational culture. It is based on Competing Values Framework (CVF).
Organizational Culture Assessment Instrument (OCAI) is one of the most used and useful frameworks in business with over 10,000 companies using it. It is well-researched and validated, but also compact tool to represent an organization’s culture where you distribute 100 points between four competing values which correspond with four types of organizational culture.
Dimensions of corporate culture by Kim Cameron and Robert Quinn
Every business organization has its own mix of the following dimensions of corporate culture including:
- Focus. Whether the organization is more flexible and adaptable (internal focus) or stable and controlled (external focus).
- Differentiation. Whether the organization values collaboration and teamwork (integration) or competition and individuality (differentiation).
Types of organizational culture by Kim Cameron and Robert Quinn
Based on different mix of dimensions, the following types of organizational culture can emerge:
- Clan culture. This type of culture is characterized by a strong emphasis on teamwork, collaboration, and loyalty. Employees in clan cultures often feel like they are part of a family, and there is a strong focus on building relationships. Clan cultures can be found in a variety of industries, but they are particularly common in healthcare, education and social services.
- Adhocracy culture. This type of culture is characterized by a focus on innovation, creativity and risk-taking. Employees in adhocracy cultures are encouraged to be entrepreneurial and to come up with new ideas. Adhocracy cultures are often found in technology companies and startups.
- Market culture. This type of culture is characterized by a focus on competition, results, and performance. Employees in market cultures are expected to be goal-oriented and to be able to deliver results. Market cultures are often found in sales, finance and consulting firms.
- Hierarchy culture. This type of culture is characterized by a clear chain of command and a focus on order and stability. Employees in hierarchy cultures are expected to follow the rules and to respect authority. Hierarchy cultures are often found in government agencies, military organizations and large corporations.
It is important to note that these are just four ideal types of corporate culture, and in reality, most companies will have a culture that is a mix of these types. The best type of corporate culture for a company will depend on a variety of factors, such as the company’s industry, size, and stage of development.
