The Organizations Culture - Types of Culture

There are four types of organizational culture which are the hierarchy (Control), Market (Compete), Clan
(Collaborate) and Adhocracy (Create) cultures. Each of these cultures is unique and one is not
necessarily better than the other.

Hierarchy culture is characterized by a workplace with a very structured and procedurally based manner
of operation. In the other word, it represent the way some governmental agencies are perceived. This
type of structured culture allows business leaders to maintain strong stability and predictability in
managing.Understanding cultural types also helps our understanding of why certain kinds of reforms or
change may impact differently within and between organization. This culture also predominatly focuses
on internal processes may be resistant to reforms aimed at promoting innovation. In essence, the
hierarchy oriented cultures are structured and controlled, with a focus on efficiency and stability, and
are slow to change.

A second type of organization culture is Market Culture which is geared to the external environment.
The market approach would reacts to market condition, monetary changes, and economic factors. This
approach looks at transactional costs with the external parties with which they interact. Key objectives
for organizations that maintain the Market culture are to ensure profitability, customer base, market
share and sales targets. The basic assumptions in a market culture are that the external environment is
hostile rather than benign, consumers are choosy and interested in value, the organization is in the
businesss of increasing its competitive position, and the major task of management is to drive the
organization towards productivity, results and profits. Leaders are hard-driving producers and
competitors who are tough and demanding. The glue that holds this organization together is an
emphasis on winning.

A third type of organization culture is called a Clan Culture which is similar to a family-oriented
organization. The clan culture places emphasis on family traits and focuses on employee involvement
and engagement. The heads of the organization are considered parental figures and loyalty and tradition
are held in high esteem. The key components for this culture is teamwork, consensus and morale. This
type of culture in Japan is exemplified by Konosuke Matsushita which was know to view the employees
of his company as if they were his family.

The fourth type culture is Adhocracy which is responsive to the ever-changing environment. It embraces
the enterprenuership spirit and the workplace encourages risk-taking to promote innovation. The word
itself ad hoc - implying something temporary, specialized and dynamic. These organizations are able to
reconfigure themselves at a rapid pace to address any circumtances that they face. They are driven by
their ability to adapt face, are flexible in their work processes and have the will to thrive in an uncertain
market. This kind of organization culture would be typical of consultancy agencies, filmmaking or
software companies. The Adhocracy Culture does not have a centralized power or authority structure. It
works based on a task team that pulls together individuals with the rights skills to address the issues or
tasks at hand. Employees are required to be multiskilled and multi-taskable in order to meet the
demands of the business and its relationship.
PLANNING - TYPES OF PLAN

There is planning for the long term and short term. These plans are established by management based
on organizational hierarchy. There are three types of plan which are Strategic Planning (Senior
Manager), Tactical Planning (Middle Manager), and Operational Planning (Lower-level Managers).

The first type of plan is Strategic Planning that will explain how the organization will serve the customer
and how it will position itself in the market as compared to its competitors (positioning). Strategic
planning is usually made for period of two to five years. Top management is responsible for developing
the plan. Top managers make long-term decisions about the overall direction of the organization. While,
deputy directors and division leaders should pay attention to the external environment of the company,
ready to take on long-term oppurtunities, and problems that may be faced by the company. These
officers must be future-orriented, tolerant of uncertainty and high competition.

A second type of plan is Tactical Planning which are developed and implemented by middle managers.
These explain how the organization will allocate and utilize resources, budgets (finance) and also the
individuals within the organization to achieve the goals set. A tactical plan is usually made for a period of
six months to two years. Middle managers implement policies and plans made by top managers to
oversea and coordinate the activities of front-line managers who are under them. Middle managers are
the functional managers as well as branches. Middle managers make tactical approach of determining
what contribution can be made by the department or work unit with the resources available for 6
months to 2 years to come. Often senior managers and front-line managers are involved in the
development of tactical planning.

The last plan is Operational Planning which is know as line managers. Typically, this plan describes the
production and distribution of products for a period of 30 days to 6 months. Job titles for front-line
mangers include such titles as the head unit, the group leader or supervisor. The front-line managers are
also involved in planning the operation. They also decide how to solve a specific task with available
resources within 1 week to 1 year ahead. Employees can take part in forming the joint operation
planning for middle managers. The plan can only be effective when the goals and plan of action made at
the lower level support and are consistent with the goals and plan of action of the upper and middle
levels. The basic goal is to achieve organizational goals. Planning is the only used once is known as
single-use. Planning that is used repeatedly is know as a fixed plan. There are three types of regular
planning which are policy, procedure and regulations.