One way to ‘measure’ organizational types is by using OCAI, the Organizational Culture Assessment Instrument. This system is quite popular due to its effective and simple nature. Two primary characteristics are measured by this system: * The ratio of stability versus flexibility, and * The ratio of internal versus external mindedness.
Based on these two dimensions, four types of organizations can be discerned, which are briefly discussed here.
1. Hierarchical Organization
The hierarchical organization is very effective in a relatively stable environment, where the efficient and predictable delivering of products is its main reason of existence. Following the rules and procedures is of the utmost importance here. This type of organizations are often characterized by a machine bureaucracy with a role culture.
2. Market Organization
In a more competitive environment, hierarchical organizations are no longer that effective, since they are too ‘internal minded’. A more external minded organization is required in such conditions. This type is called the market organization and is strongly focused on the result of the production processes. The economical and political environment is perceived is dangerous and is approached aggressively. The focus in this type of organization lies primarily on the results and productivity. The feeling that holds the company together is that feeling of being better than the competition. Here, a task culture dominates.
3. Family Organization
In a family organization (which is most often a professional bureaucracy) the idea that success is a consequence of individual development, teamwork and shared norms and values is