Factors of Organizational Culture Change

This article examines various factors that affect organizational culture. It considers the macro-environment, the micro-environment, and leadership as influential factors in organizational culture. A company's founder(s) and its leadership are the biggest influencers on culture in their responses to external events. Furthermore, the organization's development stage also affects the organizational culture's change mechanisms.

Matrix of the organizational culture management

Results of the research enable us to distinguish the types of the organizational culture in 2006 and in 2008 in the furniture manufacturing company according to K. S. Cameron and R E. Quinn typology. K. S. Cameron and R E. Quinn divided organizational cultures into the types ac-cording to dimensions of two criteria. The first dimension is defined as flexibility and freedom of action compared with stability and control, the second dimension is internal focus and integration compared with the external focus and differentiation. According to these dimensions four types of organizational culture are distinguished:

1. Clan. Such an organization is a friendly place where people can share everything with one another. The organization is similar to a large group of relatives (a tribe). Company executives are advisors or father-guardians for the employees. Values of tradition and loyalty unite members of the organization. Mutual commitment level (between an employee and the organization) is particularly high. Long-term benefits of the organization are associated with the development of human resources; close relations with workers and their spiritual/ psychological condition are considered to be important. Success of the organization is described by concepts associated with sensitivity to customers and caring for the employees of the organization. Typical forms of activity: working in teams, participation and consensus.

2. Adhocracy. It is very dynamic, creative organization, which values entrepreneurship and leadership. Employees tend to take risks. Leaders are characterized by innovation and courage to risk. Organization members are related among themselves due to the dedication to experiments and innovation. Long-term benefits of the organization are associated with the new ownership of resources and growth. Success is associated with unique and new products or services. The aim of the company is to be the leader of products or services. Employees in the organization are encouraged to take individual initiative.

3. Market. Such an organization is focused on results; the most important for employees is to achieve the set goals. Efforts of employees are oriented to-wards the achievement of goals; employees are encouraged to compete with each other, too. Leaders are determined, assertive, strict and demanding. Organization members are related among themselves in order to defeat the competition. Organization takes strong care of its reputation and success. Long-term benefits of organization are perceived through competition, measurable objectives and performance. The organization measures its success by market share and penetration into it; it is important for the organization to have competitive prices and to be market leader.

4. Hierarchy. This type of organization is very structured and formalized. Procedures describe everything how employees can and must do the work. Leaders are those who can organize and coordinate activities well and ensure their efficiency. The most important for the organization is a smooth operational process. Organization members hold together formal rules and policies. Long-term benefits are associated with stability, smooth and efficient operation. Success is associated with a reliable supply of goods, clockwork schedules, and low costs. Management of personnel must ensure the safe management of organization's resources and predictability of employees' behavior.

The type of furniture manufacturing company's organizational culture in 2006 according to K. S. Cameron and It E. Quinn typology can be described as the "hierarchy" type: organization is not flexible, bureaucracy is dominating, only a small part of employees take their own decisions and are encouraged to show personal initiative, new ideas and innovation are not encouraged, work / tacks are based on the rules and procedures, the power of the hierarchy is highlighted.

Picture 4. Types of furniture manufacturing company's organizational culture in 2006, in 2008 and in the future

Picture 4. Types of furniture manufacturing company's organizational culture in 2006, in 2008 and in the future

After the organizational culture change the type of organizational culture in 2008 can be described as a move towards "adhocracy" type: the flexibility emerges in the organization, more employees are encouraged to show personal initiative, to take risky decisions, the company focuses on the new ideas and innovation, encouraging employees' creativity, reduces the power of hierarchy, the company CEO discusses the objectives and values not only with the heads of departments, but also with specialists and encourages them to search for solutions of the arising problems.

However, it is important to remember the key problems of organizational culture in 2008 as well: communication disorders, the lack of cooperation between the departments and the lack of personnel evaluation and motivation system.

The type of organizational culture is "adhocracy", but yet not very distinguished. To build a strong organizational culture of "adhocracy" type and thus achieve the company's operational efficiency, the management matrix of furniture manufacturing company's organizational culture was designed. The matrix presents important characteristics of the organizational culture that are divided into four groups: characteristics that must be maintained, changed, improved and avoided.

Maintain Develop
1. Attention to security high-quality products
2. Attention to new ideas and innovations
3. Encouragement to work using less resources
4. Clarity and understandability of work tasks
5. Collaboration of employees, sharing of information and consulting
6. Possibility to address arising questions to direct manager
7. Encouragement to raise qualification and develop skills
1. Introduction of company's values and objectives to employees
2. Encouragement of employees to show personal initiative and to take decisions individually
3. Satisfaction and loyalty of employees
4. Possibility to have a career
5. Solution of conflicts by paying attention for all interested sides
Change
1. Weak communication in the company
2. Little cooperation and no coordinated action between separate departments
3. Uncertainty of employees about their duties and responsibilities
4. Lack of motivational system for employees
5. Lack of employees' evaluation  system
Avoid
1. Very strict and frequent control of employees
2. Danial and disregard of conflicts arising in the company
3. Spread of information through rumors

Table. Matrix of furniture manufacturing company's organizational culture management