Sometime in the 1980s, I read a book by Manfred Kets de Vries who claimed to have found six types of corporate cultures. The most intriguing thesis of the book was that most organizations are actually not sick, but not quite healthy: the so-called persistent organizations. The other five types of organizations are: the dramatic organization, the depressive organization, the paranoid organization, the coercive organization, and the schizophrenic organization.
The dramatic organization is hyperactive, impulsive, highly adventurous, and dangerously unbridled. Decision makers base their ideas on intuition and impressions rather than facts. Leaders use their charisma to concentrate all the power at the top. Therefore, they can undertake very risky operations. They do these things to create a completely different environment without really considering the existing business environment. His goal is unlimited growth. The man above wants to be the center of everything. He wants to show what a good leader he is. Without really considering reality, this type of behavior can easily result in major disasters.
The depressive organization is characterized by apathy, lack of self-confidence, and conservatism. The communication climate is passive and aimless. Activities are implemented according to predetermined schedules and routines. Employees are never asked to show initiative. In stable markets, long-established companies can withstand many crises despite their depressed state. They can survive as long as the technology and competitive pattern remain the same. The environment of these organizations is usually protected with commercial agreements and fixed fees.
The paranoid organization is characterized by extreme suspicion at the top. This is reflected in the extreme emphasis on procedures for gathering information and exercising control. A complex information system is created to analyze all the dangers of the outside world. The procedures are written in detail and everyone is required to write reports continuously. This need to regulate everything and be alert all the time results in ‘the institutionalization of suspicion’. There are many meetings to collect the same information from different people. The upside is that leaders will get the right information, but the side effect is that mutual trust is waning. A lot of valuable time and energy is wasted while morale drops all the time.
The coercive organization is addicted to rituals. Every move is literally planned. The implementation of the plans is carefully monitored; all activities are usually routine activities. Emphasis is placed on correctness and completeness when using the default methods. Rituals have become norms. As in the paranoid organization, the coercive organization depends on formal control and information systems. However, there is an important difference; Coercive organizations are really meant to monitor budgets and productivity. The paranoid organization, on the other hand, is primarily interested in things that are beyond its scope of control.
Like the depressed organization, the schizophrenic organization suffers from a lack of effective leadership. The leaders of a schizophrenic organization are not doing a good job. They are afraid to establish new contacts because they had bad experiences in the past. These leaders have reached a stage in their career where they are no longer interested in leading. If they are lucky, this problem is solved by middle managers, but these middle managers are usually only interested in their own interests. The middle middle manager often becomes a servant who just wants to curry favor with his managers. Managers are constantly in doubt, because they don’t know what proposals to accept from their subordinates. One consequence is that plans are half-implemented and actions depend on the mood of the day. The lack of consistent and consistent leadership is the most important characteristic of the schizophrenic organization.
Finally, persistent organizations often have problems with core values, norms, and beliefs. If the leaders are not trying to spread these aspects or are even against it, it will create subcultures that are not independent. Other characteristics of persistent organizations are: internal company politics is more important than efficiency, promises and agreements are often neglected, and leaders are not really interested in their employees.
So what then are the characteristics of truly healthy organizations? Here are ten parameters of a good corporate culture:
1. Pride of organization:
Employees defend your company from unwarranted criticism and say they like working at your company;
2. Orientation towards (higher) achievements:
‘At our company, everyone tries to do a better job’ and ‘our company is number one and should remain so’;
3. Teamwork and communication:
Employees listen well and try to understand each other’s ideas/opinions and employees and managers really try to help each other;
4. Supervision and leadership:
Managers are genuinely interested in other people’s problems and it is customary to ask for help when they need it;
5. Profit orientation and cost awareness:
All the expenses are evaluated whether they are effective or not, and all the members are thinking strongly about the profit;
6. Relations with employees:
Employees do not try to overcome other employees’ mistakes, and new employees are quickly accepted;
7. Relations with clients and consumers:
Everything is oriented to a better service for the client;
8. Honesty and security:
Security rules are strictly enforced and company property is viewed as sacred by everyone;
9. Education and development:
Everyone supports the education and training programs and the company really tries to develop its employees.
10. Innovation:
Systems and procedures are constantly being promoted and new ideas are always welcome.