Types of Organizations

Logic and Culture have nothing to do with one another. Culture doesn’t make sense to anyone from the outside. Culture is common sense to anyone embedded in it.

To understand and work with a large organization, let go of trying to make sense of it. Observe it and see what’s there. After that, logic might help find ways to work inside or even change it. Map what it is. Then think about moving it toward what you want.

There are three common types of organizations. Power Oriented, Rule Oriented, and Performance Oriented.

Power Oriented

Large amounts of fear and threat characterize pathological (power-oriented) organizations.[¹]

These organizations are standard when the company is significant. The idea is that employees will have a greater output through the fear of losing a job.

Rule Oriented

Bureaucratic (rule-oriented) organizations protect departments.[¹]

The most common type of organization. Often outside of modern development processes. Rule-oriented organizations tend to push forward by enforcing rules on employees.

These organizations are often legacy organizations that had some success in the past. Yet, the Culture remained the same towards individual growth and thus ended up creating a strict hierarchy.

Performance Oriented

Generative (performance-oriented) organizations focus on the mission.[¹]

Organizations that are performance-oriented focus improvement of quality and processes.

The organization’s focus is more on the growth aspect of the whole company rather than the control of individuals.

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[¹]: Gene Kim (2018): Accelerate (https://www.amazon.com/Accelerate-Software-Performing-Technology-Organizations/dp/1942788339)