Competing values framework was developed to help measure effectiveness of organizational performance. The framework helps organization to choose the right culture that will enable them to achieve their goals and growth objectives. Managers in various organizations are able to understand different culture and make the necessary changes so as to achieve the desired organization culture. The framework has two axis and one of the first axis is that organization focuses on flexibility and discretion or control and stability (Cameron, 2011). The other axis is that organization focuses on internal dynamics and employees or external dynamics, customers and shareholders. The framework has four types of culture which are clan culture, adhocracy culture, market culture and hierarchy culture.
Clan culture has a strong focus on internal focus and integration and values flexibility in the operations of the organization. The driving force of the clan culture is collaboration. The culture values employees in the organization and strives to ensure that employees are satisfied. The organization spends a lot of resources developing employees and hiring the best talents in the job market (Keskin, Akgün, Günsel, & ?mamo?lu, 2008). The culture ensures that employees are highly motivated and they are committed to their duties in the organization. Communication and empowerment is key is ensuring the morale of the employees is kept high.
Adhocracy culture focuses on external aspects of the organization and flexibility. The driving force of the culture is creating which is associated with innovation in the organization. The organization responds fast to changes in the environment and adapts quickly to different changes that occur due to environmental dynamics (Keskin, Akgün, Günsel, & ?mamo?lu, 2008). The decision making process in the organization under adhocracy culture is decentralized and employees are involved in decision-making. Initiative is encouraged in the organization as employees are encouraged to take risks and to be innovative. The culture can be implemented in startups, mature industries and constantly changing industries.
Market culture values stability and control and has a strong external focus. The culture is driven by competition in the market segment. The firm a strong desire to deliver products and services which satisfy customers and accomplish the set goals (Tharp, 2009). Customers and profits come before employees’ satisfaction and development. The employees are also expected to work hard and to adapt quickly to changes in the organization. The culture rewards hard work and results delivery.
Hierarchy culture mainly focuses on internal dynamics and control and stability I order for the company to run smoothly. The driving force of the culture is control as the organization operates under structured environment that does not value flexibility which may lead to unexpected risks in the organization (Abrahamian, 2013). Control mechanisms are implemented in the organization and efficiency in the organization is achieved through consistency and process control.
IKEA’s dominant culture is clan which focuses on internal aspects of the organization and flexibility. IKEA promotes collaboration which is the driving force of the culture. Collaboration enables employees to socialize with each other and this leads to sharing of ideas which promote innovation in the organization. IKEA values include togetherness which helps to bring people to work together under harmony (Stockdill, 2018). The firm has embraced employee cohesion and the results are good as the firm experiences less conflicts in the organization. The other value is that IKEA cares for people and that is the main reason why the company spends a lot of resources in developing staff.
Employees in IKEA are committed to their roles and their morale is high. The employees are proud to work in IKEA as the company offers employees career progression and freedom of making decisions which will have impact on the organization (Ikea.com). IKEA empowers employees to take decisions and this is achieved through hiring people with a lot of energy and have the needed social confidence that promotes collaboration in the organization (Ikea.com). Focusing on internal aspects ensures that employees are satisfied as the firm offers many possibilities that will guarantee the employee professional progression. The company has road map that has been developed by experts to ensure that the organization is able to hire the most qualified employees in the job market.
In conclusion, the four types of cultures applies in different firms. A firm cannot adopt all the four culture as this will result to conflicts of interest in the organization and this will affect performance of the firm. Organizations need to analyze the four cultures and choose the one that suits the organization and will help in accomplishing the goals of the organization. IKEA has adopted clan culture as they have invested a lot of resources in employee development and cohesion. The value of the firm include togetherness and caring for people.
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