This question has two parts; be sure to answer both. First, define organizational culture and summarize the four types of corporate culture in the competing values framework. Second, consider the case of The Fireman's Friend, a national chain that sells firefighting equipment and supplies. Due to major competition from abroad, management of the The Fireman's Friend is under constant pressure to monitor costs and keep its prices under a certain level. The company is very strictly organized, with the CEO making all of the major decisions. At each store, the manager is responsible for ensuring that any products ordered by fire departments are delivered the same day. Each store manager is also responsible for continuous quality control by reading reports on the effectiveness and safety of

Question

every item sold in the store. What type of culture does The Fireman's Friend most likely have?

What will be an ideal response?

Answer 1

Organizational culture, sometimes called corporate culture, is the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments. According to one common methodology known as the competing values framework, organizational cultures can be classified into four types: (1) clan, (2) adhocracy, (3) market, and (4) hierarchy. (See Figure 8.2.)

A clan culture has an internal focus and values flexibility rather than stability and control. Like a family-type organization, it encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction through employee involvement.

An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done.

A market culture has a strong external focus and values stability and control. Because market cultures are focused on the external environment and driven by competition and a strong desire to deliver results, customers, productivity, and profits take precedence over employee development and satisfaction.

A hierarchy culture has an internal focus and values stability and control over flexibility. Companies with this kind of culture are apt to have a formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness, and reliability in the creation and delivery of products.

Due to its structured work environment, and its focus on efficiency, timeliness, reliability, and customer service, The Fireman's Friend most likely has a hierarchy culture.