Due to its internal orientation, hierarchical culture may help the organization to be effective only when the environment is stable and certain as it prevents quick action and thus, may be a misfit to an uncertain and dynamic environment. Hierarchical culture is rule based, bureaucratic, system oriented, and with high level of formal controls (Figure 4). Bureaucratic system represents a high level of formal controls combined with a low level of informal controls (such as professional and cultural control) in the organization. Its rigid structure hinders flexibility and discretion and hence it has a low degree of innovativeness.