Corporate culture models by T. Dil and A. Kennedy
In the book, Corporate Crops: Rites and Rituals of Corporate Life, published in 1982, Terrence Deal and Allan Kennedy proposed one of the first organizational culture models.
This model includes six elements of the culture of the organization.
1. The history of the organization is a narrative of who, when and with what goals the company was founded, on what principles is based. Traditions of the past unite people who work in an organization.
2. Values and beliefs. The generality of the organization's culture is based on values shared by all employees and beliefs. Successful companies have clearly defined values, and company executives publicly proclaim them. However, often beliefs and values are not reflected in official documents, but exist at a subconscious level.
3. Rituals and ceremonies are what the employees of the organization do every day, for example, say hello in the morning or say goodbye, going home, or from time to time, for example, organize exhibitions and conferences or go on Fridays to nature with families.
4. Stories. Corporate stories, as a rule, illustrate the values of the company, contain descriptions of the heroic actions of employees in particularly difficult situations. Such stories give employees the opportunity to understand what is expected of them in the future, what is required of them for the prosperity of the business.
5. Historical personalities are heroes. Corporate stories include the names of employees and managers who are the embodiment of organizational values. These individuals serve as role models. Heroism, according to T. Dil and A. Kennedy, is an indispensable attribute of leadership, which is not always recognized by managers of modern companies. In particular, the researchers write that "since the 1920's. The corporate world is governed by managers who are rationalists, engaged in strategic planning, write orders and develop graphics . Heroes create organizations rather than manage them, they are often guided by intuition, they are not afraid to experiment.
6. A cultural network is a system of informal relationships within an organization that is used to obtain important information for work. Members of the informal network can be conditionally represented by the following groups of employees:
a) storytellers - employees who have their own ideas about what is happening in the organization and can share their observations and conclusions with others;
b) gossips are employees who supply the interesting or piquant information that is usually perceived by others with a certain degree of mistrust, but is considered entertaining;
c) people close to the leadership, who can be used to convey important information to the leadership, without resorting to formal communication channels;
d) spies are employees who, as everybody knows, can bring any information to the top management level;
e) priests and priestesses who stand guard over the values of organizational culture; these employees thoroughly studied the history of the company, interpret all situations from the standpoint of the values of the organization and lessons of the past.
T. Dil and A. Kennedy identified two environmental factors that have a significant impact on the company's organizational culture.
1. The degree of risk of the main activities of the company.
2. The time during which the market provides an opportunity to assess the company's chosen strategy in terms of its success (the speed of getting the company feedback from the market).
The researchers believed that the risk associated with the adoption of incorrect strategic decisions, as well as the time for which it turns out that the decisions turned out to be incorrect, affect the formation of the cultural climate in the organization and, in particular, the attitude of employees to the company's managers.
Based on an analysis of the combination of these factors, T. Deal and A. Kennedy presented a matrix in which four types of organizational culture were identified (Figure 6.1).
Speed of getting feedback from the market
Cool guys (macho)
Bidding on a company
Workaholic (hard players)
Fig. 6.1. Types of organizational culture by T. Dil and A. Kennedy
The matrix consists of four types.
1. Cool guys (macho). In companies with an organizational culture of this type, individualists work who like risk and receive quick feedback on the actions they have taken. This culture can be characterized by the words "all or nothing". The employees of the company strive to work hard to achieve outstanding success. Teamwork is valued in the company is not high. Workers are clearly individualists. In such companies, there is usually a high turnover of staff, which prevents the creation of an integral organizational culture. Firms with culture tough guys (macho) often found in the entertainment industry, in sports, as well as in the advertising field.
2. Workaholic (hard players). This organizational culture is widespread in trading companies. The employees themselves do not make decisions related to high risk. At the same time, they can almost immediately see the results of their activities. Workers in such organizations are usually energetic and optimistic about the future. Corporate heroes are those sales agents that enter into the largest and most profitable deals.
However, unlike the organizations with culture "steep pariahs (macho)", in these companies there is a shared view that one person can not solely by their efforts succeed the entire company. Despite the fact that competition among employees is common in such firms, it is considered that the success of the company is the result of the action of the team, all members of which are striving to obtain common results.
3. Bidding on the company. Companies of this culture work in high-risk situations, and often it takes a long time for employees to see the results of their actions. This type of organizational culture is characteristic of knowledge-intensive and capital-intensive organizations, such as oil and gas companies, architectural institutes, pharmaceutical companies.
As these companies need to make the right strategic decisions, in the organizational culture there is a common focus on long-term cooperation, a belief in the effectiveness of planning, the need for preparatory work and due diligence at all stages of managerial decision-making.
4. Focus on the process. This type of culture is determined by the fact that feedback from the market is slow, and the risks of decision-making are not high. No transaction, even a major one, does not have a big impact on the success of the company on the market, and it may take years to find out how successful the decision was. The category of organizations with a similar organizational culture include banks, insurance companies, large trading firms, as well as many government agencies.
Since immediate feedback from the market is difficult, it is difficult for employees to appreciate what they are really doing. Workers focus on how to perform what is required of them, i.e. at the very process of performing the work. Often in such organizations, the technical competence of employees is highly valued, and not the degree of effectiveness of their work.
Of course, as with other models of organizational culture, it should be remembered that in very rare cases the culture of individual companies falls completely under the characteristics of only one type.
The model of organizational culture T. Dila and A. Kennedy is descriptive. No organizational culture can be a priori better or worse than another, the type of culture is determined by the factors of the external environment in which the company operates.
To determine the type of organizational culture of the company, you can analyze the answers to the following questions.
Cool guys (macho).
1. Is the degree of individualism of the company's employees high enough?
2. Is the cohesiveness of the team supported by the existing organizational culture?
3. Is team solidarity important for a company's success?
4. Is it possible (and necessary) to build a team of employees without sacrificing the importance of individual work?
Workaholic (hard players).
1. Is there any certainty that employees do not hide behind teamwork, explaining the failure in their individual activities?
2. Does the system of motivation existing in the organization support teamwork and competitiveness among employees?
Bidding on a company.
1. Can the company respond quickly enough to changes in the environment?
2. Are employees focused on long-term goals or on short-term results of their activities?
1. Are employees in the paper work to such an extent that the processes are carried out unnecessarily slowly?
2. Is it possible to assess how well the work is done?
People with different beliefs and beliefs, attitudes toward work have different degrees of success in organizations that gravitate toward this or that type of culture. Those who respond well to high management requirements tend to work a lot and immediately see the result of their work, may experience discomfort in the organization focused on processes. Being in an unacceptable cultural environment, a person can lose confidence in himself and his forces. T. Deel and A. Kennedy wrote that "cultural shock can be the main reason for the failures of those people who switch to work from one organization to another" . The inability of people to work in an alien culture is often not taken into account in hiring procedures.
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