Organizational Culture Impacts Job Satisfaction

Journal of Business & Industrial Marketing
Organizational culture and job satisfaction
Daulatram B. Lund
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Organizational culture and job
satisfaction
Daulatram B. Lund
Associate Professor of Marketing, Managerial Sciences Department,
College of Business Administration, University of Nevada, Reno,
Nevada, USA
Keywords Organizational culture, Job satisfaction
Abstract This empirical investigation examines the impact of organizational culture
types on job satisfaction in a survey of marketing professionals in a cross-section of firms
in the USA. Cameron and Freeman's (1991) model of organizational cultures comprising
of clan, adhocracy, hierarchy, and market was utilized as the conceptual framework for
analysis. The results indicate that job satisfaction levels varied across corporate cultural
typology. Within the study conceptual framework, job satisfaction invoked an alignment
of cultures on the vertical axis that represents a continuum of organic processes (with an
emphasis on flexibility and spontaneity) to mechanistic processes (which emphasize
control, stability, and order). Job satisfaction was positively related to clan and
adhocracy cultures, and negatively related to market and hierarchy cultures.
Introduction
The 1980s witnessed a surge in popularity to examine the concept of
organizational culture as managers became increasingly aware of the ways
that an organizational culture can affect employees and organizations. This
interest led management scholars and practitioners to undertake research
investigations resulting in numerous articles, including a complete issue of
Administrative Science Quarterly (September 1983), Organization Dynamics
(Autumn 1983) and Journal of Management Studies (May 1986) being
devoted to corporate or organizational culture issues. In marketing literature,
despite the importance given to the study of culture in the 1960s towards
understanding consumer behavior, particularly in market segmentation,
communication, diffusion of innovations, and cross-cultural comparisons
(Engel et al., 1968; Zaltman, 1965), relatively few studies have investigated
organizational culture and its impact on marketing management issues
(Deshpande and Webster, 1989). These studies include those that have
recognized the importance of corporate culture in modeling selling
effectiveness (Weitz et al., 1986), implementation in marketing strategy
(Walker and Ruekert, 1987), customer orientation within organizations
(Bonoma, 1984; Deshpande et al., 1993), and strategic market planning
(Deshpande and Parasuraman, 1986; Mahajan et al., 1987).
The pervasiveness of an organization's culture requires that management
recognize the underlying dimensions of their corporate culture and its
impact on employee-related variables such as satisfaction, commitment,
cohesion, strategy implementation, performance, among others. However,
relatively few empirical studies have examined these relationships. For
example, Sheridan (1992) examined the organizational culture-employee
retention link among college graduates in accounting firms, while
Vandenberghe (1999) investigated that link among nurses in hospitals.
Other studies, such as Buono et al. (1985), examined the effects of
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Organizational culture
JOURNAL OF BUSINESS & INDUSTRIAL MARKETING, VOL. 18 NO. 3 2003, pp. 219-236, # MCB UP LIMITED, 0885-8624, DOI 10-1108/0885862031047313 219
An executive summary for
managers and executive
readers can be found at the
end of this article

organizational culture on its employees in the merger process in banking
firms; Koberg and Chusmir (1987) examined the relationship between
organizational cultures and managerial credibility, motivation, and other
variables; while Deshpande et al. (1993) examined the relationship of
organizational culture, customer orientation, and innovativeness to business
performance in Japanese firms. Each of these studies employed different
corporate cultural measurement instrumentation. While much of the early
conceptual framework for corporate cultures has been developed and
investigated in management literature, Deshpande et al.'s (1993) study
adapted a comprehensive framework of corporate culture typology and
showed its applicability in the marketing context. Utilizing Deshpande et
al.'s (1993) typology of corporate cultures, the present empirical
investigation focuses on examining the relationship between organizational
culture types and job satisfaction of marketing professionals in a cross-
section of firms in the USA.
Literature review
Organizational culture
The notion of ``culture'' is often associated with exotic, distant peoples and
places, with myths, rites, foreign languages and practices. Researchers have
observed that within our own society, organization members similarly
engage in rituals, pass along corporate myths and stories, and use arcane
jargon, and that these informal practices may foster or hinder management's
goal for the organization (Baker, 1980; Deal and Kennedy, 1982; Peters and
Waterman, 1982). In the organizational behavior literature, a number of
definitions for organizational culture have been proposed. For example,
Kilmann et al. (1985, p. 5) defined corporate culture as ``the shared
philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes
and norms'' that knit an organization together. Deal (1986, p. 301) defined it
as ``the human invention that creates solidarity and meaning and inspires
commitment and productivity.'' Uttal (1983) defined it as a ``system of
shared values (what is important) and beliefs (how things work) that interact
with a company's people, organizational structures, and control systems to
produce behavioral norms.'' While no strong consensus has formed on a
definition, in the present study corporate culture is defined as ``the pattern of
shared values and beliefs that help individuals understand organizational
functioning and thus provide them with norms for behavior in the
organization'' (Deshpande and Webster, 1989, p. 4).
Organizational literature also acknowledges the difficulty of measuring and
identifying a typology of organizational cultures, mainly, because the shared
assumptions and understandings lie beneath the conscious level for
individuals. Early researchers identified them through stories, special
language, artifacts, and norms that emerge from individual and
organizational behavior (Adler and Jelinek, 1986; Bate, 1984; Deal and
Kennedy, 1982; Ouchi and Wilkins, 1985; Trice and Beyer, 1984, among
others). Cameron and Freeman (1991) identified a useful framework of
organizational culture types by integrating the works of several researchers
(Campbell, 1977; Jung, 1923; Mason and Mitroff, 1973; Mitroff and
Kilmann, 1975; Quinn, 1988; Quinn and McGrath, 1985; Quinn and
Rohrbaugh, 1983; Smircich, 1983; Wilkins and Ouchi, 1983, among others).
This framework presented in Figure 1 is based on four sets of attributes:
(1) the dominant characteristics or values;
(2) the dominant style of leadership;
``Culture''
Organizational literature
220 JOURNAL OF BUSINESS & INDUSTRIAL MARKETING, VOL. 18 NO. 3 2003

(3) the bases for bonding or coupling; and
(4) the strategic emphasis present in the organization.
As illustrated in Figure 1, the vertical axis describes the continuum from
organic to mechanistic processes, ranging from an emphasis on flexibility
and spontaneity to control, stability, and order. The horizontal axis describes
the relative organizational emphasis on internal maintenance (smoothing
activities, integration) to external positioning (competition, environmental
differentiation). The resulting culture types are clan, adhocracy, hierarchy,
and market.
Specifically, each culture type is characterized by a particular set of shared
beliefs, style of leadership, set of shared values that act as a bond or glue for
members, and strategic emphases in pursuit of effectiveness. For example,
the lower right quadrant, called market culture, emphasizes a goal-oriented
enterprise; led by a hard driver or producer; held together by an emphasis on
task and goal accomplishment; emphasizing competitive actions and
achievement (Cameron and Freeman, 1991). This culture type competes or is
in direct contrast to the set of values expressed in a clan culture characterized
by a personal place; led by a mentor, facilitator or parent-figure; bonded
together by loyalty and tradition; emphasizing human resources. Similarly,
the lower left quadrant characterizes a bureaucratic hierarchy culture which
stresses a formalized, structured place; led by a coordinator or organizer;
held together by formal rules and policies; emphasizing stability. In contrast,
Figure 1. A model of organizational culture types
Culture type
JOURNAL OF BUSINESS & INDUSTRIAL MARKETING, VOL. 18 NO. 3 2003 221

in the upper right quadrant, the competing set of values for the adhocracy
culture emphasizes a dynamic, entrepreneurial place; led by an entrepreneur
or innovator; held together by a commitment to innovation and development;
emphasizing growth and acquisition of new resources.
In sum, while validating the usefulness of the above typology of cultures,
Deshpande et al. (1993) emphasize that these culture types are modal or
dominant ones rather than mutually exclusive ones. Conceivably, most firms
can and do have elements of several types of cultures. It thus follows that
identifying a typology of cultures also makes it possible to determine if
organizations are dominated by one type or have attributes of several types.
The present investigation utilizes Deshpande et al.'s (1993) framework of
organizational cultures typology and analysis.
Job satisfaction
Job satisfaction has been widely studied over the last four decades of
organizational research (Currivan, 1999). Job satisfaction has been defined
and measured both as a global construct and as a concept with multiple
dimensions or facets (Locke, 1969, 1970; Price, 1997; Scarpello and
Campbell, 1983). In general, overall job satisfaction has been defined as ``a
function of the perceived relationship between what one wants from one's
job and what one perceives it as offering'' (Locke, 1969). A large number of
studies have investigated the relationship between job satisfaction and
various organizational variables. For example, several researchers have
examined the relationship between job satisfaction and organizational
commitment (Agho et al., 1993; Brooke et al., 1988; Cramer, 1996;
Currivan, 1999; Glisson and Durick, 1988; Lance, 1991; Lok and Crawford,
1999; Mowday et al., 1979; Vandenberg and Lance, 1992). Other researchers
have examined the link between satisfaction and performance (Lawler and
Porter, 1969; Locke, 1970; Tvorik and McGivern, 1997), cohesion (Odom
et al., 1990), age and gender (Morgan et al., 1995), gender, organizational
level, and management practices (Burke, 1995, 1996), and organizational
climate (Argyris, 1973; Downey et al., 1975; Friedlander and Margulies,
1969; Pervin, 1968).
The preceding literature review notwithstanding, relatively fewer studies
have investigated the link between job satisfaction and organizational
cultures. For example, Odom et al. (1990) investigated the relationships
between organizational culture and three elements of employee behavior,
namely, commitment, work-group cohesion, and job satisfaction. They
concluded that the bureaucratic culture, which dominated their sample of
transportation organizations, was not the culture most conducive to the
creation of employee commitment, job satisfaction, and work-group
cohesion. In related studies, Nystrom (1993) investigating health care
organizations, found that employees in strong cultures tend to express greater
organizational commitment as well as higher job satisfaction. Despite these
few studies, a void appears to exist in literature examining the direct link
between organizational culture types and job satisfaction. In addition, none
of the studies have examined the relationship within the framework of
corporate cultures presented in Figure 1.
Research hypothesis
Given the need for management to recognize the pervasive impact of
organizational culture on employee-related variables in today's competitive
environment, the present study focuses on the relationship of corporate
culture types with employee job satisfaction within the typology of cultures
Organizational research
Literature review

presented in Figure 1. Organizational cultures that emphasize values of
fraternal relationship, mentors, and respect for individual members, foster
loyalty, long-term commitment, and aid employee satisfaction (Kerr and
Slocum, 1987). In contrast, organizational cultures that emphasize order and
control, aggressiveness, and a strong desire for individual achievement, may
be viewed as a ``ruthless'' work environment not conducive to employee
long-term security, loyalty, and satisfaction (Shellenbarger, 2000). In the
present study framework of organizational cultures, the vertical axis
represents the continuum of cultures that place an emphasis on flexibility and
spontaneity (organic processes) to control, order, and stability (mechanistic
processes). It thus follows that one can expect employees to be more satisfied
with their jobs in firms that espouse clan and adhocracy cultures where the
organizational emphasis is more on mentoring, flexibility, and spontaneity,
than in firms with hierarchy and market cultures where organizational
emphasis is placed on control, stability, and order, at the other end of the
continuum. Therefore, within the conceptual framework of the study, it is
hypothesized that:
H1. The influence of organizational culture types on employee job
satisfaction will range from best to worst along the continuum of organic
processes (clan and adhocracy) to mechanistic processes (hierarchy and
market).
Method
Research instrument
A self-administered structured questionnaire elicited responses from
marketing professionals on several issues, including organizational culture
and job satisfaction. The operationalization of the culture construct was
adapted from Cameron and Freeman (1991) and similar to that utilized by
Deshpande et al. (1993). They constructed brief scenarios to describe the
dominant characteristics of each of the four culture types, based on the
framework presented in Figure 1. In the research instrument (see Appendix)
all four culture types were presented as alternatives in each question. To give
respondents the opportunity to indicate both the type of culture(s) and the
strength of the culture, respondents were instructed to distribute 100 points
among the four scenarios in the questions, depending upon how similar
respondents thought each scenario was to their own organization. As shown
in the Appendix, each respondent was presented with four questions, each
assessing the organization's general cultural characteristics, leadership style,
institutional bonding and strategic emphases.
Job satisfaction measures were adapted from Wright and Cropanzano (1998).
A five-item scale operationalized job satisfaction. Each item measured a
dimension of the satisfaction construct: degree of satisfaction with the work,
co-workers, supervision, total pay, and promotional opportunities. Each of
the items was measured on a seven-point scale ranging from ``strongly
disagree'' to ``strongly agree'' (see Appendix). Respondents were classified
into low and high satisfaction groups based on a median split of their
summed scores, with ties at the median assigned to the high satisfaction
group.
Sample and data collection
In a number of past studies, researchers have collected data on organizational
culture from individual respondents employed in a cross-section of firms in
various industries (Appiah-Adu and Singh, 1999; Boxx et al., 1991; Lok and
Crawford, 1999). Similarly, the data for the present study were obtained by
Questionnaire
Satisfaction measures

self-administered questionnaire mailed to a sample of 1,800 marketing
professionals in a cross-section of organizations in the USA. The American
Marketing Association directory comprised the sampling frame. The sample
was chosen on a systematic sampling basis from the directory. To limit the
study to marketing practitioners, educators and students listed in the
directory were excluded from the sampling frame. Also, to confine the study
to domestic marketing practitioners, individuals listed in the directory with
foreign addresses were excluded from the sampling frame.
The mailing consisted of the questionnaire itself, a cover letter, and a
stamped pre-addressed return envelope. As response inducement, each
respondent was promised a copy of the study results on request. Of the 1,800
questionnaires mailed, 87 were returned by the post office as undeliverable
and 360 usable questionnaires were received, representing a 21.0 per cent
response rate. The response rate was deemed encouraging in comparison
with that of past studies involving the use of the American Marketing
Association directory as the sampling frame (e.g. Barnett et al. (1998)
reported a 19 per cent response rate; Sparks and Hunt (1998) reported a 7 per
cent response rate; Singhapakdi (1999) reported a 23 per cent response rate).
The extrapolation method of Armstrong and Overton (1977) was utilized to
test for nonresponse bias. Profile of ``late'' respondents (25 per cent of the
sample) was compared to ``early'' respondents (75 per cent of the sample)
across organizational characteristics (size, role) and demographics (gender,
age, education, income). There were no significant differences between
``early'' and ``late'' respondents across all variables except education level.
However, since education level serves only to profile respondents,
nonresponse bias is deemed not to affect results of the investigation.
Table I is a summary of the characteristics of the sample. As shown in the
table, the sample comprised individuals of varied demographic and
organizational backgrounds. Also, the sample compares favorably in
characteristics with that of past studies involving the use of the American
Marketing Association directory as a sampling frame (Akaah and Riordan,
1989; Singhapakdi, 1999; Sparks and Hunt, 1998). The respondents spanned
a wide range of industries. A majority of respondents were employed in
firms with 100 or more employees (68 per cent), were executives (78 per
cent), of rank of manager or higher (77 per cent), had at least a college
degree (93 per cent), majoring in business (66 per cent), female (52 per cent),
married (72 per cent), 30 years of age or older (83 per cent), and earning
$50,000 or more per annum in household income (82 per cent).
Results
The results of undertaking an analysis similar to that reported by Deshpande
et al. (1993) who used the same framework of culture typology, are
presented as follows. Table II presents a summary of respondents' mean
scores for the four culture types they perceived in their respective
organizations and their job satisfaction. Each respondent's four culture
scores were computed by adding all four values of the A items (see
Appendix) for clans, of the B items for adhocracy, of the C items for
hierarchy, and of the D items for market. As previously mentioned, job
satisfaction score represents summated ratings of the five-item job
satisfaction scale related to work, co-workers, supervision, pay, and
promotional opportunities. Scale reliability for each culture type and job
satisfaction was measured by Cronbach alpha coefficient. As can be seen in
Response rate
Summary of characteristics

Characteristic Percenta
Organizational characteristics
Industry category
Manufacturing 22.9
For-profit services 24.3
Research agency 14.5
Health care 12.3
Telecommunication 5.0
Advertising agencies 4.2
Not-for-profit services 2.3
Distributive trade 6.7
Marketing consulting 6.1
Transportation 1.7
Size (number of employees)
Less than 10 6.5
10-49 15.6
50-99 9.1
100-249 15.0
250-499 9.9
500-999 8.5
1,000-4,999 18.4
5,000 or more 17.0
Organizational rank
CEO/president/owner 7.6
Sr vice president/vp 18.7
Director 24.2
Manager/project director 26.9
Analyst/consultant 7.4
Account exec./sales rep. 8.5
Other 7.6
Demographic characteristics
Age
20-29 16.7
30-39 35.9
40-49 29.5
50-59 14.8
60 or more 3.1
Gender
Male 47.5
Female 52.5
Marital Status
Single 18.9
Married 72.2
Divorced/separated 8.9
Education
Some college 6.1
Bachelor's degree 22.5
Some post bachelor's work 18.3
Master's degree 41.7
Some post master's work 7.8
Doctorate degree 3.6
Major
General business 7.9
Business-marketing 44.4
Business-accounting 2.5
(continued)
Table I. Profile of study sample

Table II, the reliability coefficients range from 0.62 to 0.81, thus adequately
meeting the standards for such research (Nunnally, 1967).
The overall mean scores indicate that respondents perceived their
organizational culture type to be predominantly market, a fact which is
consistent given the sample comprised of marketing professionals.
Respondents identified clan culture type as the next most similar in their
organizations, followed by adhocracy, and last by hierarchy culture type. It is
emphasized that in all cases the self-reported cultures of individual firms
contain elements of all the four culture types. This is consistent with past
studies that have reported multiple subcultures in a firm to be the rule and
unitary culture the exception (Deshpande et al., 1993; Van Maanen and
Barley, 1984). Table II also reports significant differences in employee job
satisfaction across the four corporate culture types. Respondents expressed
lower levels of job satisfaction in organizations in which market or hierarchy
Characteristic Percenta
Business-management 7.6
Business-statistics 0.8
Business-finance 1.7
Engineering 2.0
Other technical 2.5
Humanities 9.3
Other-liberal arts 20.3
Household income (before taxes)
Less than $29,999 2.9
$30,000-$49,999 15.1
$50,000-$69,999 17.1
$70,000-$79,999 10.7
$80,000-$99,999 14.5
$100,000-$119,999 14.8
$120,000-$139,999 8.7
$140,000-$159,999 4.3
$160,000-$179,999 2.6
$180,000-$199,999 2.1
$200,000 or more 7.2
Note: a
N = 360
Table I.
Meansa
(SD)
Scale
No. of
items
Cronbach
alpha All
Low
satisfaction
High
satisfaction
Culture
Clan 4 0.60 97.9b
(55.8) 85.9 (53.3) 108.4 (55.8)
Adhocracy 4 0.80 93.6b
(63.7) 82.6 (63.2) 103.1 (62.8)
Hierarchy 4 0.63 89.9b
(57.2) 102.8 (64.0) 78.8 (48.1)
Market 4 0.63 117.8b
(59.0) 127.5 (61.0) 109.4 (56.1)
Job satisfaction 5 0.75 23.8b
(5.8) 18.7 (3.5) 28.2 (3.0)
nc
355 165 190
Notes: a
Numbers are summations of the four individual components for each culture
type. The four culture scores were computed by adding all four values of the A items
for clan, of the B items for adhocracy, of the C items for hierarchy, and of the D
items for market (see Appendix). b
Highly significant univariate differences between
high and low job satisfaction scores. c
Of the 360 firms in the sample, five firms with
one or more missing variables were not included in the analysis
Table II. Measures of corporate culture and job satisfaction
Mean scores

culture types dominate. In contrast, organizations in which respondents
expressed higher levels of job satisfaction are dominated by clan and
adhocracy organizational culture types. All organizations, however,
possessed attributes of several of these cultures, i.e. no organization was
characterized by only one type of culture.
As in the Deshpande et al. (1993) study, and in support of the above
descriptive analysis results, a two-group discriminant analysis was
undertaken. A median split of employee job satisfaction scores served to
classify firms into high and low satisfaction groups. Each firm's scores for
the four organizational culture types were used as explanatory variables in
the discriminant analysis. Results of the two-group discriminant analysis are
presented in Table III. The coefficients are essentially partial correlations of
each culture type with the job satisfaction score. The coefficients of the four
culture types provide support for the study hypothesis. The discriminant
function separates the top two cultures (clan and adhocracy) from the bottom
two cultures (hierarchy and market). Clan and adhocracy cultures are
positively associated with job satisfaction, while market and hierarchy
cultures are both negatively associated with job satisfaction. Thus the
relative ordering of culture types from the best to worst level of job
satisfaction are clan, adhocracy, market, and hierarchy cultures. The
univariate tests for job satisfaction are highly significant for all four culture
types. The discriminant function correctly classified 62.4 per cent of
respondents in the high and low job satisfaction groups. The classification
results are significantly better than chance which predicts 50.3 per cent
correct classification based on the proportional chance criterion (Morrison,
1969).
Although the above analysis supports the study hypothesis, it does not
indicate whether the differences in job satisfaction levels are significant
across the four organizational culture types. This requires a one-way analysis
of variance with post hoc tests. Also, since each organization possessed
attributes of several culture types, a firm's dominant culture needs to be
established. The cultural congruence procedure of Cameron and Freeman
(1991) was adapted for this purpose. A firm's dominant culture was
determined when the respondent gave the highest number of points on at
least three of four questions concerning the organizational culture's
dominant attributes, leader style, bonding, and strategic emphases,
Eigenvalue
Canonical
Correlation
Wilks'
Lambda Chi Square df Significance
0.085 0.280 0.921 28.7 4 0.000
Pooled within-group correlations of
function and independent variable Univariate F-test p-value
Culture
Clan 0.705 0.000
Adhocracy 0.556 0.002
Hierarchy ±0.734 0.000
Market ±0.532 0.004
Groups Centroid Percent correctly classified
High job satisfaction 0.271 62.4
Low job satisfaction ±0.313
Table III. Summary of discriminant analysis between high and low job
satisfaction
Analysis results
One-way analysis

representing the same quadrant of Figure 1. By this procedure, 173 of 360
firms in the sample were identified with dominant cultures with the
following breakdown: clan (26 firms), adhocracy (33 firms), hierarchy (30
firms), and market (84 firms). The results of a one-way analysis of variance
and Duncan's multiple comparison procedure for main-effect means are
presented in Table IV. The results indicate significant (F = 8.04, p < 0.001)
differences in the level of job satisfaction between the four organizational
culture groups of firms. Duncan's multiple comparison procedure detected
three significant homogeneity subsets comprising of hierarchy cultures,
market cultures, and a third subset comprising of clan and adhocracy cultures
(Table IV). As in the discriminant analysis, the relative ordering of culture
types from best to worst level of job satisfaction are clan and adhocracy on a
par, followed by market, and last by hierarchy cultures.
Discussion
This study set out to explore the influence of corporate culture types on
employee job satisfaction. A typology of organizational cultures consisting
of four forms ± clan, adhocracy, hierarchy, and market was utilized. Job
satisfaction levels varied significantly across corporate cultural typology and
invoked an alignment of culture types on the vertical axis continuum that
ranges from organic processes to mechanistic processes (Figure 1). Both,
clan culture (characterized by its emphasis on mentoring, loyalty, and
tradition) and adhocracy culture (characterized by its emphasis on
innovation, entrepreneurship, and flexibility) elicited significantly higher
levels of employee job satisfaction than market culture (characterized by its
emphasis on competition, goal achievement, and market superiority) and
hierarchy culture (characterized by its emphasis on bureaucratic order, rules
and regulation, and predictability).
It is, however, emphasized that while overall job satisfaction in clan and
adhocracy organizational culture types is higher than overall job satisfaction
in market and hierarchy cultures, it does not imply that employee
performance will be correspondingly higher in adhocracy and clan cultures
than in market and hierarchy cultures. In fact, Deshpande et al. (1993)
Job satisfaction
Dominant culture Number of firms Mean SD
Clan 26 25.23 5.2
Adhocracy 33 25.67 5.6
Hierarchy 30 19.70 5.9
Market 84 22.59 5.2
Analysis of variance of job satisfaction
Sum of squares df Mean square F p
Between cultures 696.25 3 232.083 8.04 0.000
Within cultures 4,876.20 169 28.853
Total 5,572.45 172
Duncan's homogeneous subsets
Subset for alpha = 0.05
Dominant culture N 1 2 3
Hierarchy 30 19.70
Market 84 22.69
Clan 26 25.23
Adhocracy 33 25.67
Table IV. Summary of results of job satisfaction in dominant organizational
cultures
Corporate culture types

reported the ranking of these four cultures types in terms of business
performance (from best to worst) as: market, adhocracy, clan, and hierarchy.
While the jury is still out on the direction of satisfaction-performance link,
the inadequacy of the old bromide ``the happy worker is the productive
worker'' should not be overlooked (Locke, 1970).
It is also interesting to note that the findings on culture types and job
satisfaction are also theoretically consistent with the competing values model
from which the study conceptual framework was derived (Quinn, 1988). For
example, employees report higher levels of job satisfaction in the clan
culture in which members exhibit a strong sense of pride in fraternity and
interdependence. In contrast, positioned in the diagonally opposite quadrant,
lower levels of job satisfaction are observed among members of the market
culture which typically encourages a strong sense of independence and
individuality. Similarly, the competing values of the adhocracy culture
produce higher job satisfaction levels than those of the hierarchy culture
positioned in the diagonally opposite quadrant (Figure 1).
It is emphasized that the data requirements for research on organizational
culture types as well as job satisfaction are demanding. The cultural typology
utilized in the study is one of many reported in literature. Also, the analyses
are based on self-reported data generated from individual respondents with
varied demographic and organizational backgrounds from companies
spanning different industries. Such a design has limitations including a
potential problem of confounding variations in cultural values with what
may be broad industry-wide differences in organizations' management.
Therefore, cross-comparisons and generalizations of results from the present
sample to others must be done with caution pending future research
replications with improved methodologies.
Managerial implications
Given the exploratory nature of the study results, suggestions for practice are
necessarily speculative and brief. First, being cognizant of the organization's
dominant culture(s) can help management assess inherent strengths and
limitations of their strategies. Furthermore, since in most organizations,
attributes of several cultures are present, some of which have opposing
values and emphasis (i.e. attributes of a market and a clan may exist in the
same organization although these are opposite in emphasis), managers'
sensitivity to the existence of these paradoxes can be heightened towards
more effective strategies.
Second, mergers and acquisitions have flourished in the past decade.
However, success in such activities is likely to depend upon not only the
resulting economic synergy but also on the cultural compatibility of the
merging entities. As discussed in the previous paragraph concerning cultural
paradoxes within a single corporation, the same arguments apply in
instituting changes of perhaps higher magnitudes during merger and
acquisition activities. Clashes in corporate cultures of merging entities could
easily overshadow synergistic benefits resulting in undesirable
consequences.
The final suggestion concerns the relationship between corporate culture and
employee job satisfaction. To maintain competitive advantage, companies
need to nurture a relationship with workers. The womb-to-tomb mentality of
staying with one employer appears to have disintegrated and combined with
downsizing and layoff from mergers and acquisitions, management may be
hard pressed in retaining and developing a loyal work force. Literature
Data requirements
Mergers and acquisitions

suggests that employees who are more satisfied with their jobs are absent
less (Hackett and Guion, 1985), less likely to leave (Carsten and Spector,
1987), more likely to display organizational citizenship behavior (Organ and
Konovsky, 1989), and to be more satisfied with their lives overall (Judge and
Watanabe, 1993). The present study results suggest clan and adhocracy
corporate cultures are conducive for higher levels of employee job
satisfaction. Therefore, managers in organizations desiring to create greater
levels of job satisfaction should begin a concerted effort to build consensus
and cohesion, emphasize teamwork and loyalty, while encouraging
innovation and entrepreneurship. The performance-based, individualism, and
short-term focus of the market culture, as well as the bureaucratic setup of
hierarchies may not generate the level of job satisfaction needed to foster
loyalty and long-term commitment to the organization.
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Appendix. Operational measures for culture and job satisfaction
Culture
The questions that follow relate to what your company's operation is like. Each of the
numbered items contains four descriptions of organizations. Please distribute 100 points among
the four descriptions depending on how similar the description is to your company. None of the
descriptions is any better than any other; they are just different. For each question, please use
all 100 points. You may divide the points in any way you wish. Most companies will be some
mixture of those described.
1. Kind of organization (Please distribute 100 points)
___ points (A) My organization is a very ___ points (B) My organization is a
for A personal place. It is like an for B very dynamic end entrepreneurial
extended family. People seem to place. People are willing to stick
share a lot of themselves. their necks out and take risks.
___ points (C) My organization is a very __ points (D) My organization is very
for C formalized and structured place. for D production oriented. A major
Established procedures generally concern is with getting the job
govern what people do. done, without much personal
involvement.
2. Leadership (Please distribute 100 points)
__ points (A) The head of my organization __ points (B) The head of my organization
for A is generally considered to be a for B is generally considered to be an
mentor, sage, or a father or entrepreneur, an innovator, or
mother figure. a risk taker.
__ points (C) The head of my organization ___ points (D) The head of my organization
for C is generally considered to be a for D is generally considered to be a
coordinator, an organizer, or producer, a technician, or a
an administrator. hard-driver.
3. What holds the organization together (Please distribute 100 points)
___ points (A) The glue that holds my ___ points (B) The glue that holds my
for A organization together is loyalty for B organization together is
and tradition. Commitment to commitment to innovation and
this firm runs high. development. There is an
emphasis on being first.
___ points (C) The glue that holds my __ points (D) The glue that holds my
for C organization together is formal for D organization together is the
rules and policies. Maintaining emphasis on tasks and goal
a smooth-running institution is accomplishment. A production
important here. orientation is commonly shared.
4. What is important (Please distribute 100 points)
___ points (A) My organization emphasizes ___ points (B) My organization emphasizes
for A human resources. High cohesion for B growth and acquiring new

and morale in the firm are resources. Readiness to meet
important. new challenges is important.
___ points (C) My organization emphasizes ___ points (D) My organization emphasizes
for C permanence and stability. for D competitive actions and
Efficient, smooth operations are achievement. Measurable goals
important. are important.
[The four culture scores were computed by adding all four values of the A items for clan, of the
B items for adhocracy, of the C items for hierarchy, and of the D items for market (Deshpande
et al., 1993). The resulting scores can, therefore, equal more or less than 100, which would be
the result only if respondents distributed points equally on each question. The scale was
adopted from Cameron and Freeman (1991).]
Job satisfaction
The following statements describe your feelings toward certain job-related issues regarding the
organization you currently work for. For each, please indicate the extent to which you agree/
disagree with the statement by circling the appropriate number on the scale.
Strongly disagree Strongly agree
1 2 3 4 5 6 7
(1) All in all, I am satisfied with the work of my job.
(2) All in all, I am satisfied with my co-workers.
(3) All in all, I am satisfied with the supervision.
(4) All in all, I am satisfied with my pay (total wages and tips).
(5) All in all, I am satisfied with the promotional opportunities.
(The job satisfaction score was computed by adding responses to all five items. The scale was
adapted from Wright and Cropanzano (1998).)
&

Executive summary and implications for managers and
executives
Organizational culture and job satisfaction
To maintain competitive advantage, companies need to nurture a
relationship with their workers. That is especially true now that the mentality
of staying with one employer appears to have disintegrated and downsizing
is a common occurrence. Employees who are more satisfied with their jobs
tend to be absent less, less likely to leave, and more likely to be satisfied with
their working lives and their lives overall.
Organizational culture is the pattern of shared values and beliefs that helps
individuals to understand the way the organization functions and so provides
them with norms for behaviour in the organization. Lund examines the
relationship between types of organizational culture and the job satisfaction
of marketing specialists in a cross-section of organizations in the USA.
Types of organizational culture
The study focuses on the following types of organizational culture:
Clan ± whose dominant attributes are cohesiveness, participation, teamwork
and a sense of family; whose leaders are mentors, facilitators and ``parent
figures''; whose bonding is achieved through loyalty, tradition and
interpersonal cohesion; and whose strategic emphases are developing
human resources, commitment and morale.
Adhocracy ± whose dominant attributes are entrepreneurship, creativity and
adaptability; whose leaders tend to be entrepreneurs, innovators and risk
takers; whose bonding is achieved through entrepreneurship, flexibility and
risk; and whose strategic emphases are innovation, growth and new
resources.
Hierarchy ± whose dominant attributes are order, uniformity, rules and
regulations; whose leaders tend to be co-ordinators or administrators;
whose bonding is achieved through rules, policies and procedures; and
whose strategic emphases are stability, predictability and smooth operations.
Market ± whose dominant attributes are competitiveness and goal
achievement; whose leaders are decisive and achievement orientated; whose
bonding is achieved through goal orientation, production and competition;
and whose strategic emphases are competitive advantage and market
superiority.
The culture types that favour job satisfaction
The study reveals that clan and adhocracy cultures entail higher levels of
employee job satisfaction than market and hierarchy cultures. Therefore,
managers in organizations who wish to create greater levels of job
satisfaction should begin a concerted effort to build consensus and cohesion,
emphasize teamwork and loyalty, and encourage innovation and
entrepreneurship. The performance-based individualism and short-term
focus of the market culture, as well as the bureaucratic set up of hierarchies,
may not generate the level of job satisfaction needed to foster loyalty and
long-term commitment to the organization.
The link with performance is tenuous
The author stresses, however, that while overall job satisfaction in clan and
adhocracy organizational culture types is higher than overall job
This summary has been
provided to allow managers
and executives a rapid
appreciation of the content
of this article. Those with a
particular interest in the
topic covered may then read
the article in toto to take
advantage of the more
comprehensive description
of the research undertaken
and its results to get the full
benefit of the material
present

satisfaction in market and hierarchy cultures, this does not imply that
employee performance will be correspondingly higher. In fact, other
research has reported the ranking of the four types of organizational culture,
in terms of business performance (from best to worst) as market, adhocracy,
clan and hierarchy.
Most organizations combine several cultures
Moreover, attributes of several cultures, some of which have opposing values
and emphasis, are present in most organizations. The same organization may
show, for example, attributes of the market and clan cultures simultaneously.
(A preÂcis of the article ``Organizational culture and job satisfaction''.
Supplied by Marketing Consultants for Emerald.)

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