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Organizational culture is made up of the shared assumptions, values, norms, and patterns of behavior within an organization. These values and assumptions shape how members think, feel, and behave in different situations. As a result, organizational culture is a key factor in organizational effectiveness and long-term success.
The Competing Values Framework  identifies four culture types based on an organization's focus and structure. These types are distinguished by whether organizations prioritize internal capabilities and integration vs. external orientation and differentiation (focus) or flexibility and discretion vs. stability and control (structure). Each type possesses unique sets of values, beliefs, assumptions, and behaviors that shape how the organization operates and pursues its goals.
1. The team-oriented culture is characterized by an internal focus and a flexible organizational structure. This culture type values attachment, affiliation, membership, and support. These values lead to behaviors such as teamwork, participation, employee involvement, and open communication. This type of culture is built on the belief that trust and commitment to employees leads to transparency and involvement, which in turn lead to a higher morale, job satisfaction, and commitment. The team-oriented culture attributes success to human capital.
2. The hierarchy culture type is characterized by an internal focus and a control organizational structure. Its core assumption is that stability, predictability, and control foster efficiency. This leads to the expectation that employees will meet expectations when their roles are clearly defined. Values such as precise communication, routine, formalization, and consistency are important in this culture. Conformity and predictability are key behaviors in this culture and are expected to promote efficiency, timeliness, and smooth functioning.
3. The change-oriented culture type is characterized by an external focus and a flexible organizational structure. Its underlying assumption is that change produces new resources, hence the fundamental belief that an idealistic and novel vision encourages creativity and risk-taking. As such, this culture type values growth, stimulation, variety, autonomy, and attention to detail. Risk-taking, creativity, and adaptability are key behaviors in this culture and are expected to foster innovation and cutting-edge outcomes.
4. The market-oriented culture type is externally oriented and reinforced by an organizational structure driven by control. This culture emphasizes achievement, focus, and competitiveness, leading to productivity and shareholder value in the short term. Clear goals and contingent rewards are believed to motivate employees to perform. In this culture, values such as competence and achievement are reinforced, and behaviors such as planning, task focus, centralized decision making, and the setting of clear goals are encouraged. These behaviors contribute to the achievement of business goals and can help the organization overcome competitors, improve product quality, and enhance market share and profitability.
Irrespective of type, organizational culture evolves through the joint processes of selection and socialization that ensure person-organization fit. Job-seekers may select roles and companies that align with their values, and companies strive to hire candidates who share their values. New hires are then socialized and absorbed into the organization, while those who do not fit are likely to leave. Individual values and preferences are reflected in the choices made by the organization and are reinforced within the organizational context. This process helps to align individual and organizational values.
The current instrument evaluates cultural fit based on individuals' preferences for the four culture types defined earlier. It is derived from validated and reliable instruments that assess organizational culture, such as The Organizational Culture Profile.   
“Cultural fit” refers to how aligned employees are with the organizational culture. It reflects the degree to which employees’ goals, values, and belief systems connect with the company’s objectives and values. Although a person may have the required skill set to perform a particular job, they may not necessarily perform at the highest level possible unless they fit in with their team or the wider company culture in terms of day-to-day behavior. This is why cultural fit is crucial, helping companies and individuals alike make informed decisions about the extent to which they can support each other in the achievement of outstanding results.
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