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Running head:
Impact of organization culture on Tqm 1 Impact of organization culture on Tqm 17
Research Paper: How does types of organization culture impact the implementation

of TQP Ajinkya S Kore (616822) BUS 503D Foundations of Management California

Baptist University 12/01/2015
Author Note This paper is prepared for better understanding of impact of
organization culture on implementation of TQM under the guidance of Prof. Dr.
Marc Weniger.
Abstract The purpose of this paper is to show the potential links between TQM, its
implementation and organization culture, and to highlight the impact of the four
types of organization culture on implementation of TQM and its success. Based on
the literature developed by Cameron and Quinn (1999), it is proposed that
organization culture is classified into four different types depending on the
characteristics that they have, and these types are group/clan, adhocracy,
hierarchical and market culture. The study of this research paper is purely based on
a review of the literature. This review of the literature a revealed that the adhocracy
and group culture types are the most supportive cultures for TQM implementation
or are in positive association with implementation of TQM and other bureaucratic
cultures such as hierarchical and market cultures are not supportive for TQM
implementation or these cultures are in negative association with implementation of
TQM.
Keywords: Organization culture, Total Quality Management-TQM, Group culture,
Adhocracy culture, Hierarchical culture, Market culture.
Introduction In todays competitive global economy, Successful organizations are
continuously faced with the need to adopt and employ transformational initiatives
and changes (Choi & Ruona, 2011). Total quality management (TQM) is one of these
transformational initiatives and one of the most important evolutions of
management practices (Zakuana, Yusof, Laosirihongthong, & Shaharoun, 2010;
Dahlgaard-Park, 2011; Duh, Hsu, & Huang, 2012). TQM is a philosophy,
management approach and culture of managing the organization, which emphasizes
mutual co-operation, involving everybody in the organization at each level and
improvement in all aspects of the organization, while Rad (2006) believes that TQM
is the culture of an organization committed to total customer satisfaction through
continuous improvement (p. 607). In todays era of global marketing, many

organisations in different parts of the world have implemented the principles and
practices of TQM (Kuo & Kuo, 2010;1 Zakuan et al., 2010; Lam, Lee, Ooi, & Lin,
2011). This is due to their recognition of TQM as being a means to achieve a business
performance, competitive advantage and continuous success in international
marketing competition (Lam et al., 2011). However, many research studies have
indicated a high rate of problems and failures in the process of implementing TQM
(Abdolshah & Abdolshah, 2011).
Recent literature in the field of TQM has expressed that there is an increasing
recognition of the influence of organizational culture on the success or failure of
TQM implementations (Zu, Robbins, & Fredendall, 2010; Gimenez-Espin, Jime
nez-Jimenez, & MartnezCosta, 2012 Green, 2012). It is suggested by many
research studies that organizational culture is one of the most important variables in
the success or failure of TQM implementation (Kujala & Lillrank, 2004; Metri, 2005;
Tata & Prasad, 1998). Organisational culture has also been a major topic of research,
involving many classifications and definitions. Among these, the typology of
Cameron and Quinn is one of the most important (Henri, 2006). Those authors rely
on the Competing Values Framework proposed by Quinn (1988) to create what they
call a tool for the assessment of organizational culture, with four types of
cultures: 1 clan, adhocracy, market and hierarchy. Many studies have tested the
impact of the four culture types of the competing value framework (CVF), namely
group, adhocracy, hierarchical and market/rational, on the implementation of TQM
in order to determine the most supportive organization culture types for TQM
implementation (Dellana & Hauser, 1999; Gimenez-Espin et al., 2012). The concept
of organizational culture is the subject of considerable interest in the literature on
quality management. The cultural impacts on quality management and the mutual
relationship between TQM and organizational culture have been discussed since the
beginning of the 1990s (Hildebrandt et al., 1991; Westbrook, 1993).
The aim of this study was to understand precisely how does four types of
organization culture impact the implementation of TQM. To do this, the relevant
literature in the fields of TQM and organizational culture is thoroughly discusses to
identify the kind of culture that can be expected to promote the success of a TQM

system. The results of this study suggests that there is considerable evidence to
support the impact that four types of organization culture can have on
implementation of TQM.
Literature Review Step #1 As an introduction to the study of the impact of
organization culture on TQM, it is very important to present the brief literature on
each of these concepts to know main aspects in the research that specifically
examines this impact. Total quality management (TQM) is described as a
management tool which provides companies a competitive advantage and allows
them to generate higher profits. Organizational culture is one of the most important
variables in the success or failure of TQM implementation. Depending on several
studies it is said that organization culture and structural factors play very important
role in the success of the TQM.
Organizational culture Organizational culture is one of the key elements for
implementing TQM practices. Catanzaro, Moore, and Marshall (2010) described that
the phenomenon culture exist at different levels that comprises of both the national
culture and organization culture. According to Cameron & Quinn, (1999)
organization culture is the set of norms, beliefs and values shared by members of the
organization. But, the concept of organization culture is very broad and vast and it
can be found at alternate levels such as values, rules and practices. Moreover,
members of an organization are affected by organization culture through influence of
behavior and performance outcomes and the external government of an
organization. According to Martin (2005, p. 148): Organizational culture is a set of
commonly held attitudes, values, and beliefs that guide the behavior of an
organizations members. Multiple researchers including Frohman (1998), O'Relly,
Chatman, & Caldwell (1991), Schein (1996) have described that there are many types
of organization culture since this concept first appeared in the literature. To classify
types of cultures and their impact on TQM, it is very beneficial to use the competing
values model of Cameron and Quinn (1999). This model defines a widely accepted
typology of organizational cultures that has been used in many empirical studies.
Two dimensions of the 39 performance indicators developed by Campbell are used
to extract the definition of culture in this model. The first dimension relates to the

orientation of the company to stability versus flexibility, according to the importance

given to control and order (stability) or innovation and dynamism to adapt to
environmental changes (flexibility). The second dimension refers to the orientation
of the company, which may be external, when it is primarily concerned about
customers, competitors and the environment, or internal, when the focus is on the
people, products and processes of the organization. These two competing values in
combination proposes four types of organization culture namely group/clan,
adhocracy, hierarchical and market/rational that impact the TQM. Clan culture is
based on flexibility and internal focus. In it, the organization acts like a family,
promoting teamwork, commitment and involvement. Adhocratic culture fosters
flexibility, but its orientation is external. Its objectives include creativity, risk taking,
individuality and initiative. The corporations dominated by the adhocracy culture
type are characterized by a vibrant, innovative and flexible tendency. The
hierarchical culture is based on stability and control along with an internal focus and
such organizations fail to encourage innovation and creativity among their
employees (Zammuto, Gifford, & Goodman, 2010). Market culture looks for an
external perspective through which to differentiate it from competitors, intended to
produce a market leader, but uses stability and control to achieve its goals of internal
and external competitiveness and productivity. The organizations dominated by the
market culture, have a result-driven ethos. Consequently, the members of this kind
of organization are less likely to implement TQM. 2(Cameron & Quinn, 1999)
Step #2 Total quality management TQM has been considered as an important
mechanism for promoting the smooth running of companies and attaining a
competitive advantage. Hackman and Wageman (2005), suggested that the
philosophy was based on assumptions made about four organizational components:
quality, people, organizations as systems and senior management. These five
were the explicit identification and measurement of customer requirements, the
creation of supplier partnerships, the use of cross-functional teams to identify and
solve quality problems, the use of scientific methods to monitor performance and to
identify areas for performance improvement and the use of process management
heuristics to enhance team effectiveness. Multiple researchers including Flynn,

Schroeder, and Sakakibara (1994), have described TQM as s an integrated effort to

achieve and maintain high-quality products based on the maintenance of continuous
process improvement and error prevention at all levels and in all functions of the
organization with the aim of reaching and even exceeding customer expectations.
TQM is considered as means to achieve a business performance, competitive
advantage and continuous success in international marketing competition (Lam et
al., 2011). However, many research studies have indicated a high rate of problems
and failures in the process of implementing TQM (Abdolshah & Abdolshah, 2011).
Several researchers including Zu, Robbins, & Fredendall (2010), Green (2012) have
described that there is an increasing recognition of the influence of organizational
culture (OC) on the success or failure of TQM implementations. TQM is a
philosophy, management approach and culture of managing the organization, which
emphasizes mutual co-operation, involving everybody in the organization at each
level and improvement in all aspects of the organization. TQM aims at achieving
customer satisfaction by not only producing products and services that fulfil
customer needs and requirements, but also exceeding them through continuous
improvements.
Step #3 Although the importance of organizational culture for TQM has been widely
suggested in the literature, this relationship raises some questions. First, Cameron
and Quinn (1999) point out that those competing values that could help the
organization to implement a TQM system could be present in each culture:
empowerment, teamwork, employee involvement, HR development, open
communication (clan culture); creating new standards, developing products,
continuous improvement, customer orientation, finding creative solutions
(adhocracy culture); error detection, control processes, systematically solving
problems, apply quality tools, measurement (hierarchical culture); measuring
consumer preferences, productivity gains, involving customers and suppliers,
increasing competitiveness, creating collaborators (market culture). This implies the
need for all types of culture.
Irani, Beskese, and Love (2012), Detert et al. (2010) believe that organizations with
clan or group culture are the most favorable to implementing a TQM program

successfully. Many authors have found that group culture has a positive influence on
TQM implementation (Naor et al., 2008; 1 Zu et al., 2010). Corporations dominated
by the hierarchy culture fail to encourage innovation and creativity among their
employees (Zammuto, Gifford, & Goodman, 2010). Thus, members working in such
organizations, are expected to be less likely to apply TQM.
It is argued by Cameron and Quinn (1999) that corporations dominated by the
adhocracy culture type are characterized by a vibrant, innovative and flexible
tendency. According to the findings of many research studies of multiple researcher
including Dellana & Hauser (1999), Naor et al. (2008), Gimenez Espinet al. (2012)
suggest that adhocracy culture has positive influence on TQM implementation.
Zammuto et al (2010) stated that the members of the organizations dominated by
market culture are less likely to implement TQM. The findings of many research
studies suggest that market culture has a negative influence on TQM
implementation (Dellana & Hauser, 1999; Gimenez-Espin et al., 2012).
Step #4 From the research of multiple researchers including Naor et al. (2008),
Gimenez-Espin et al. (2012), Zammuto et al (2010), Cameron and Quinn (1999),
Irani, Beskese, and Love (2012) hypothesis can be formulated that each type of
organization culture has different effect on total quality management and its
implementation. Which type of organization culture impact the total quality
management in positive way and/or negative way? How is total quality management
affected with change in type or style of organization culture? How does the type of
organization culture impact the implementation of TQM in any organization?
With that literature, the research question is as follows, How does types of
organization culture impact implementation of total quality management?
Discussion Organizational culture is one of the important aspects for implementing
TQM practices. Few researchers have concentrated their efforts on studying this
concept. 3 According to Stock et al. 4 and Yu (2007), organization culture is defined
generically as, the set of norms, beliefs and values shared by members of the
organization.Many research studies have been carried out to understand the impact
of the types of organization culture namely group/clan, adhocracy, hierarchical and
market/rational, on the implementation of Total Quality Management (Gimenez-

Espin et al., 2012). In this paper, I will discuss how four types of organization culture
impact the total quality management implementation in an organization.
According to reviewed literature, it can be said that types of organization culture
have either positive or negative impact on an implementation of TQM. Each of the
four types of an organization culture has different impact.
Claim 1: The first type which is group or clan culture has favorable or positive effect
on implementation of TQM or organizations with clan culture are most favorable to
implementing a TQM program successfully.
Reasons: Organizations that are dominated by clan or group culture are comfortable
with the change that might take place due to implementation of TQM. Clan culture
has factors such as employee motivation, commitment and customer orientation that
play vital role in implementation of TQM successfully. Accordingly, members in such
organizations are expected to work and behave in manner consistent with TQM
practices (Naor et al., 2008).
Evidences: Prajogo & McDermott (2005) believe that organizations with clan or
group culture are the most favorable to implementing a TQM programme
successfully. It is also argued that to implement TQM successfully, the
organizational culture must change and be characterized by its customer orientation,
the support of senior management, employee engagement and variables that are
present in clan/group culture (Naor, Goldstein, Linderman, & Schroeder, 2008).
The clan/group culture has an internal focus that is suitable for total quality
management. (Prajogo & McDermott, 2005). Moreover, organizations dominated by
group or clan culture give its members a voice in the product design and process
management, as well as responsibility for the results (Naor, Goldstein, Linderman,
& Schroeder, 2008, p. 676). Furthermore, Neal, West, and Patterson (2005) have
stated in their study that the organizational climate favors training and motivation,
variables that form part of the clan and culture. This will support the success of a
TQM system, so after reviewing arguments stated above, it is evident that
organization dominated by group or clan culture are favorable to implementation of
TQM successfully.

Claim 2: According to literature, the second type of organization culture which is

adhocracy culture, is in positive relationship with an implementation of total quality
management and I strongly agree to this statement because of few reasons and
evidences that are available to prove so.
Reasons: Adhocracy culture has characteristics such as workers training, motivation,
anticipation of customer needs, continuous innovation that has a positive
relationship with information availability and flexibility within the organization.
Because of these characteristics adhocracy culture tends towards facilitating
implementation of TQM. Few studies have also suggested that external orientation
of adhocracy culture has a positive relationship with TQM implementation and
success.
Evidences: Jabnoun & Sedrani, (2005) have argued that customer orientation and
continual improvement are the two variables available in adhocratic culture that
have major effect on implementation of TQM and its success. It is argued that
adhocracy promotes continuous innovation, a highly educated workforce, great
autonomy and motivation and availability of useful information (Lo, 2002). Some
studies have indicated that organizations with adhocratic culture that use quality
systems obtain better results (Lagrosen & Lagrosen, 2003). It is argued by Cameron
and Quinn, Zu et al. (2010) that corporations dominated by the adhocracy culture
type are characterized by a vibrant, innovative and flexible tendency. These
organizations stimulate individual initiatives and the utilization of new systems such
as TQM which improves the efficiency of their organization. This will in turn foster
individuals Involvement in the implementation of TQM and increase the probability
of TQM success. Moreover, it is suggested by the findings of many research studies
that adhocracy culture has positive influence on TQM implementation (Naor et al.,
2008; GimenezEspinet al., 2012). Therefore, it is proposed that adhocracy culture is
in positive relationship with implementation of TQM and its success.
Claim 3: In available literature it is argued that bureaucratic culture such as
hierarchical culture does not lead to successful implementation of TQM.
Reasons: The characteristics of clan or adhocracy culture such as workers training,
motivation, customer orientation and continual improvement that result in positive

effect on TQM implementation, will not be present in an organization dominated by

hierarchical culture. Another reason to support this claim is that customer
orientation is important for success of TQM and innovation is key to achieve
customer orientation, but this variables are not available in hierarchical culture. In
available literature, it is also suggested that the hierarchical culture emphasizes the
normalization of processes and standardization of products because of this,
organizations dominated by such cultures might prefer implementation of quality
programs such as ISO9000 than implementation of TQM.
Evidences: It is argued by Mosadegh Rad (2006) found that bureaucratic cultures, in
which control is important, such as the hierarchical and the market culture, were
characterized by TQM programs that had little success. The studies have also shown
that hierarchical status does not lead to successful TQM implementation (Kumar &
Sankaran,; Walumbwa & Lawber, 2007) and that cultures with high bureaucracy do
not encourage TQM because of their lack of customer orientation (Lagrosen &
Lagrosen, 2003). Corporations dominated by the hierarchy culture fail to encourage
innovation and creativity among their employees (Zammuto, Gifford, & Goodman,
2010). Thus, members working in such organizations, are expected to be less likely
to apply TQM. 5 . It is also argued by Zammuto et al.(2010) that organizations
dominated by the hierarchy culture do not encourage innovation and
creativity. Furthermore, these organizations resist the implementation of new
change initiatives and ignore or minimize environmental influences (Zammuto et al.,
2010).Consequently, the members of this kind of organization are more likely to
have a negative attitude towards organizational change. Thus, it is evident that
organizations dominated by the hierarchy culture does not lead to successful
implementation of TQM or such organizations are in negative association with
implementation of TQM.
Claim 4: After reviewing the existing literature, it is reported that another
bureaucratic culture that is market culture is in negative association with
implementation of TQM. I agree this argument.
Reasons: In market culture control and formalization are considered as important
elements, so there will be no innovation and thus customer orientation is unable to

achieve. Customer orientation is an essential element for implementation which is

not present in market culture so with such culture implementation of TQM will not
work to give desired results.
Evidences: In order to support above described claim, some studies have indicated
that the market culture has an orientation towards fixed objectives and the search
for the lowest transaction costs with respect to suppliers, customers and workers,
which may adversely affect the successful implementation of TQM (Aiken,
Bacharach, & French, 2008). In literature it is reported by Cameron and Quinn
(1999) that organizations dominated by the market culture, have a result-driven
ethos. 5 The question of morale and personnel development tends to be considered
less important by the leaders who are more single-minded about getting the job done
and increasing profits (Cameron & Quinn; 1 Zammuto et al., 2010). Other studies
have shown that customer orientation and continual improvement, two of the
variables present in both clan and adhocratic cultures, and not present in market
culture, are those that have a major effect on TQM success (Jabnoun & Sedrani,
2005). As a result of this discussion it can be stated that organizations dominated or
run by market culture are in negative association with successful implementation of
TQM and it can also be stated that market culture has adverse effect on
implementation of TQM and its success.
5

Limitations There are some shortcomings of this research that lead to avenues for

future research. First, the current study has examined only the available secondary
research literature, there was no primary research involved in this study to
understand the impact of four types of organization culture on implementation of
total quality management-TQM. There might be other potential outcomes or
findings which have not been included or discussed in this study. Second, as this
study was purely based on secondary research literature, there was lack of recent or
current articles related to study. The literature reviewed was taken from articles
within past 10 years but there were only few articles that from previous two years.
Conclusions This study contributes to knowledge of understanding the impact that
organization culture has on implementation of TQM. The findings of this study show
that the four types of organization culture namely: group/clan, adhocracy,

hierarchical and market cultures are either supportive or non-supportive to the

implementation of TQM. In other words, it can be stated as these four cultures are
either in positive or in negative association with the implementation of TQM. Group
or clan culture has favorable or positive effect on implementation of TQM or
organizations with clan culture are most favorable to implementing a TQM program
successfully because organizations that are dominated by clan or group culture are
comfortable with the change that might take place due to implementation of TQM.
Clan culture has factors such as employee motivation, commitment and customer
orientation that play vital role in implementation of TQM successfully. From the
discussion in this paper it can be concluded that adhocracy culture has
characteristics such as workers training, motivation, anticipation of customer needs,
continuous innovation that has a positive relationship with information availability
and flexibility within the organization. Because of these characteristics adhocracy
culture tends towards facilitating implementation of TQM.
On the other hand, hierarchical and market cultures have been shown to have a
negative relationship with implementation of TQM. Excessive focus on control
prevents the requirement of TQM that employees should be given greater freedom
and responsibility, to get involved and seek continuous improvement and error
reduction. This results in negative association of hierarchical and market cultures
with implementation of TQM. (Jabnoun & Sedrani, 2005; Kumar & Sankaran, 2007;
Mosadegh Rad, 2006). The characteristics of clan or adhocracy culture such as
workers training, motivation, customer orientation and continual improvement that
result in positive effect on TQM implementation, will not be present in an
organization dominated by hierarchical culture. In market culture control and
formalization are considered as important elements, so there will be no innovation
and thus customer orientation is unable to achieve. Customer orientation is an
essential element for implementation which is not present in market culture so with
such culture implementation of TQM will not work to give desired results.
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