Business Culture

Two models of business culture are presented below. One business operating style is not necessarily better than another. Each style has its advantages and disadvantages and can only be judged within the particular circumstances faced by the organization.

• Interpersonal Interaction Model of Business Culture
• Risk & Feedback Model of Business Culture
  
• Understanding Culture and its impact on the organization
  
• Back to Steps in the Strategic Planning Process 
   
• Culture for High Performance - details some of the cultural attributes that can influence how well an organization performs toward meeting its potential.  (slightly shorter version of this paper)

Interpersonal Interaction Model

• Power Culture: Strong leaders are needed to distribute resources. Leaders are firm, but fair and generous to loyal followers. If badly managed there is rule by fear, abuse of power for personal gain, and political intrigue.
• Achievement culture: Rewards results, not unproductive efforts. Work teams are self-directed. Rules and structure serve the system, not an end by themselves. A possible downside is sustaining energy and enthusiasm over time.
• Support Culture: Employee is valued as a person, as well as a worker. Employee harmony is important. Weakness is a possible internal commitment without an external task focus.
• Role Culture: Rule of law with clear responsibility and reward system. Provides stability, justice, and efficiency. Weakness is impersonal operating procedures and a stifling of creativity and innovation.

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Risk & Feedback Model

• Macho, Tough-guy Culture: High risks, quick feedback of results. (Advertising, entertainment)
• Work-hard & Play-hard Culture: Few risks, quick feedback. (Sales driven)
• Bet-the-Company Culture: High risk, slow feedback. (Aerospace)
• Process Culture: Little to no feedback. Concentration is on "how" work is done. (Highly regulated, government)

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Understanding Culture

1. Who sets the style and pace?
   What kind of Role Model are they?
   "Do as we do" or "Do as we say?"
2. What behavior is rewarded, condemned or ignored?
   Is feedback constant, intermittent, at job completion, or never?
   Are improper or unethical practices condoned through silence?
3. What information is shared? (needed vs. desired information)
   Is upward information flow constrained? (Do you really know?)
4. How is superior performance encouraged?
   What type of performance appraisal system is used?
   How are the best qualified people recruited?
   Is training and development offered to everyone?
5. Are values backed up by time and money?
6. What is the relative importance of
   - bottom line results?
   - saving face?
   - power building?

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Last modified: May 22, 2007