Dr Fons Trompenaars on Corporate Culture

Summary

This video discusses a corporate culture model developed over 25 years, based on a database of 60,000 people. The model classifies organizational cultures into four types: Guided Missile (task-oriented, egalitarian), Eiffel Tower (task-oriented, hierarchical), Family (personal-oriented, hierarchical), and Incubator (egalitarian, personal-oriented). It explores how these cultures interact, often creating dilemmas when different corporate cultures merge. The model helps companies understand these tensions and reconcile cultural differences to improve corporate dynamics and harmony, especially in international contexts.

Takeaways

• 😀 Corporate culture is incredibly important and can sometimes override national cultures in organizational behavior.
• 😀 The speaker presents a model based on two axes: task-oriented vs. person-oriented culture and hierarchical vs. egalitarian culture.
• 😀 This model identifies four types of organizational cultures: Guided-Missile, Eiffel Tower, Family, and Incubator.
• 😀 The **Guided-Missile** culture is task-oriented and egalitarian, common in Anglo-Saxon countries, focusing on strategy, performance-based rewards, and management by objectives.
• 😀 The **Eiffel Tower** culture is task-oriented and hierarchical, often found in Germanic cultures, emphasizing structure, job descriptions, and titles to assert authority.
• 😀 The **Family** culture is person-oriented and hierarchical, common in Latin, Asian, and African cultures, where relationships and loyalty play a significant role in management.
• 😀 The **Incubator** culture is person-oriented and egalitarian, typical in flexible, learning-focused environments like Silicon Valley, where passion and personal growth are central.
• 😀 The model helps understand the cultural dynamics in international work and the dilemmas that arise when different cultural types interact.
• 😀 Tensions between dominant corporate cultures can occur in mergers, acquisitions, or cross-border business dealings, creating challenges that need to be reconciled.
• 😀 This framework aids companies in recognizing and resolving dilemmas caused by cultural mismatches during organizational changes or when working with global teams.

Q & A

What is the main focus of the corporate culture model discussed in the transcript?

The main focus of the corporate culture model is to show the different types of organizational cultures based on two axes: personal vs. task-oriented culture and hierarchical vs. egalitarian culture. This model helps to understand how corporate culture can sometimes override national cultures.

What are the two axes used to define organizational culture in the model?

The two axes used in the model are: 1) personal vs. task-oriented culture (horizontal axis), and 2) hierarchical vs. egalitarian culture (vertical axis). These axes intersect to form different types of organizational cultures.

How does the model describe a 'Guided-Missile' culture?

The 'Guided-Missile' culture is an egalitarian and task-oriented culture commonly found in Anglo-Saxon countries. It is focused on strategy, performance, and management by objectives. Employees are rewarded based on their performance, and the organizational structure is centered around vision, mission, and values.

What is the criticism of the 'Guided-Missile' culture?

The criticism of the 'Guided-Missile' culture is that it often overlooks the personal aspects of the workplace and lacks respect for authority. It is more focused on results and performance than on the individuals within the organization.

What characterizes the 'Eiffel Tower' culture?

The 'Eiffel Tower' culture is task-oriented and hierarchical. It is often associated with Germanic cultures and values structure, job descriptions, and expertise. Employees are respected based on their qualifications and titles, and authority comes from expertise and roles within the hierarchy.

Why do Germans value titles in the 'Eiffel Tower' culture?

In the 'Eiffel Tower' culture, titles such as 'Doctor' or 'Professor' signify expertise, which is a key source of authority within the hierarchical structure. The emphasis on expertise and formal qualifications plays a major role in how authority is distributed in this culture.

What does the 'Family' culture represent?

The 'Family' culture combines hierarchy with a person-oriented approach, often seen in Latin, Asian, or African cultures. It is based on personal relationships and networks, where employees are motivated by loyalty to their boss and the accumulation of power.

What drives motivation in the 'Family' culture?

In the 'Family' culture, employees are primarily motivated by their relationships with superiors and the desire to accumulate power within the organization. It emphasizes management by personal connection rather than by performance or job description.

What is unique about the 'Incubator' culture?

The 'Incubator' culture is egalitarian and person-oriented, commonly seen in places like Silicon Valley. It encourages creativity, personal growth, and learning. Employees are motivated not by salary but by the opportunity to learn and develop within an environment of organized chaos.

How does the model help companies in mergers or acquisitions?

The model helps companies understand and identify cultural differences between organizations, especially in mergers or acquisitions. It highlights potential dilemmas that arise when dominant cultures clash and provides insights on how to reconcile these differences to foster better integration.