Eight Types of Organizational Culture (Groysberg)

Eight Types of Organizational Culture (Groysberg)

Culture is the social order of an organisation. It forms people's attitudes and behaviours in a wide range of ways. Cultural norms determine what is encouraged or discouraged and what is accepted or rejected within a group. Groysberg, Lee, Price and Cheng (2018) identified four attributes of culture: Shared, Pervasive, Enduring, and Implicit.

The researchers believe that two primary dimensions in a corporate organization define the type of culture it has: People Interactions and Response to Change:

People interactions can be independent or interdependent or anywhere between.
People's response to change fall on a spectrum from resistant to adaptive.

Based on the score on these two dimensions, they arrive at following 8 types of organisational cultures: Caring, Purpose, Learning, Enjoyment, Results, Authority, Safety, and Order.

1. CARING

Focuses on relationships and mutual trust
Has a warm, collaborative, and welcoming work environment
63% of the companies studied had a caring culture
Example: Disney

Pros

Improved teamwork
Employee engagement
Trustful communications
Sense of belonging

Cons

Slower decision-making process
Lack of competitiveness
Misses the opportunity of exploring alternatives

2. PURPOSE

Driven by idealism and altruism
Has a tolerant and compassionate work environment
9% of the companies studied had a purpose culture
Example: Whole Foods

Pros

Sustainability and social responsibility
Values diversity

Cons

Overlooks practical and immediate concerns

3. LEARNING

Focuses on exploration, expansiveness, and creativity
Has an inventive and open-minded work environment
7% of the companies studied had a learning culture
Example: Tesla

Pros

Improved innovation
Flexibility
Organisational learning

Cons

Lack of focus on strategic goals and wastes time and resources
Fails to make the most out of established advantages

4. ENJOYMENT

Presents fun and excitement
Has a light-hearted work environment
2% of the companies studied had an enjoyment culture
Example: Zappos

Pros

Improved employee morale and engagement
Creativity

Cons

Lack of discipline
Has compliance or governance risks

5. RESULTS

Focuses on achievement and winning
Has an outcome-oriented and merit-based work environment
89% of the companies studied had a results culture
Example: GSK

Pros

Strong execution
Improved capability building
Goal achievement
External focus

Cons

Possible poor communication and collaboration between employees
Higher levels of work stress and anxiety

6. AUTHORITY

Defined by strength, decisiveness, and boldness
Has a competitive work environment
4% of the companies studied had an authority culture
Example: Huawei

Pros

More effective decision-making
Quicker response to threats or crises

Cons

Possible office politics and conflict
Lower job security for employees

7. SAFETY

Refers to planning, caution, and preparedness
Has a predictable work environment
8% of the companies studied had a safety culture
Example: Lloyd's of London

Pros

Improved risk management
Stability
Business sustainability

Cons

Inflexibility
Possible bureaucracy
An inhumane work environment

8. ORDER

Focuses on respect, hierarchy, and shared norms
Has a methodical work environment
15% of the companies studied had an order culture
Example: SEC

Pros

Higher operational efficiency
Reduced internal conflict
Greater civic mindset

Cons

Reduced individualism
Lack of creativity
Limited organisational agility

One organisation can have more than one or several types of culture. There is no right or wrong about any style mentioned above. However, due to their natural constraints and competing demands, some combinations could create difficult choices about which values to prioritise and how employees should behave. Effective leaders make use of the existing set of cultural strengths and have a clear idea of how to make changes if necessary.

The study asserted that organisational culture affects business outcomes. When the desired outcomes change, a company should deploy a new set of culture types to support its goal achievement. Four practices lead to successful culture evolution:

ARTICULATE THE DESIRED CULTURE. Creating a new culture starts with an analysis of the current one. Then leaders can identify what types of culture are missing for the future portfolio.
SELECT AND DEVELOP THE RIGHT LEADERS. Candidates for leadership positions should be evaluated on their alignment with the target culture. Education on the importance of culture for strategies and outcomes also offers leaders a greater focus on culture.
USE ORGANISATIONAL CONVERSATIONS. As leaders begin talking about a new culture explicitly, publicly and repeatedly, employees will realise what culture is now valued and encouraged and behave differently.
REDESIGN THE ORGANISATION. If the existing mechanism does not support the new culture, leaders need to consider how to improve it. A structure, systems, and processes that aligned will make the culture change much easier.

As we have all heard, "culture eats strategy for breakfast". So to achieve business success by setting up our goals and implementing strategic plans, let's get our culture right first.

Source: Groysberg, B., Lee, J., Price, J., & Cheng, J. 2018, "The Leader's Guide to Corporate Culture", Harvard Business Review, 96 (1): 44-52.