Every business has a different way of operating, different leadership skills, core values and goals – and this can broadly be included in the factors that make up the organizational or ‘corporate culture’. Show However, corporate culture can be so much more than this, encompassing the public image of the company, how it attracts new staff and the philosophy used in decision-making. Some businesses provide free tea and coffee for their staff and consider that to be all that is needed for a beneficial corporate culture. Other companies offer fully flexible working, with remote offices and work from home options. Many make the employee the highest priority, adapting the work environment completely to attract the best and brightest in new talent. For some businesses, the learning and development of staff is given high priority, with paid opportunities to pursue further qualifications such as sponsored tuition for an MBA. Corporate culture is the unique social structure and psychological environment of a workplace, and no two organizations are completely alike. Any organization should view their company culture as the personality of the business and the foundation for its success. Why Is Corporate Culture Important?For some, the idea of investing in the culture of a business might seem a bit ‘fluffy’, a nice-to-have element of the workplace that does not matter too much. But the right corporate culture can not only improve the effectiveness of the organization but also enhance the experience and purpose of the employees. Regular team building is a feature in organizations that are considered to have an excellent corporate culture, as is open communication from the top down, including open channels for feedback, concerns and new ideas. Corporate culture forms the structure of the business – from the values and beliefs that help achieve goals, to the standards of work, attitudes and self-image of the employees, right down to productivity and performance. It is the shared understanding of ‘what is expected’ – from leadership to staff, into public perception. Every society needs some structure, and the workplace is no different. Organizational structure relies on shared understanding and knowledge of business goals, with values and expectations which are clear and shared widely so that all processes and procedures can be followed to ensure success. How Is Corporate Culture Formed and Can It Change?To some extent, the type of industry might dictate the culture that forms through necessity. For companies that need stability and control, such as manufacturing or government departments, a more fixed and logical company culture might be necessary for success. For others, like tech or software startups, more flexibility and individuality might be important to stay ahead of the curve. Although it needs careful consideration, changing a company's culture is possible. A structured plan needs to be created, taking into account all aspects of the organization, from the company values and identity to investing in employee wellbeing and ensuring that feedback is taken on board. It also requires looking at recruitment: how the business is attempting to attract the right employees, flexible working arrangements, learning and development, recognition, the way the business communicates internally and the public image it wishes to present. With all these considerations, buy-in from all staff needs to be achieved first and foremost, with changes made gradually. By executing the changes in stages and evaluating the results with input from all employees, as well as using leadership teams that can communicate changes with authenticity and transparency, an organization can improve company culture. How Does Corporate Culture Impact Employee Behavior?There is a magnetic quality to the right culture that will bring talented people to your organization – and getting it right is about more than just ‘things’. Having break-out areas with ping-pong tables, free fruit Fridays and company socials is one facet that might benefit your employees, but investing in your workplace culture will inform the organization that employees are the most important asset in the business. Happy employees are more productive, have a shared understanding of the company’s goals and vision, and feel empowered and engaged. This level of job satisfaction will reduce staff turnover and reward the loyalty of those who work well in that culture. Perks, benefits, rewards, incentives and clear communication can take a company’s culture to the next level, ensuring that all staff are enthusiastic about working towards shared goals, aligned with the vision and ethos of the company – everyone willing to work for the benefit of the organization. Four Types of Corporate CultureAlthough there are four distinct types of corporate culture as described here, for many businesses, it is harder to define differences. Some businesses naturally need stability and control, while others value flexibility and initiative. Some organizations have an internal focus, whereas some focus externally. The ‘this or that’ nature of these descriptors might not relate to all businesses, so there is likely to be gradual differences or parts of one culture intermingled with others. In some organizations, different departments may have a different type of culture – production might be more of a hierarchical structure while marketing might be considered more of an adhocracy. Many businesses will fall somewhere inbetween these binary values: 1. HierarchyHierarchical cultures rely on processes and policies to give them reliable, stable and efficient results. They are often highly structured with a strong internal focus and definable, stratified leadership systems. Leaders are considered to be efficient problem solvers and employees understand their roles, learning them well enough to be considered experts. In the hierarchy culture, uniformity and traditional values are important, and the bottom line takes precedence with risk-averse decision making. Pros and Cons for Employees
Corporate culture—everyone’s concerned about it, but it’s not that easy to pin it down and not that easy to train. Step one is to define your culture.  “Corporate culture” is a popular term often used as a buzzword to describe the climate within an organization. According to Inc., “Corporate culture refers to the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. Corporate culture is rooted in an organization’s goals, strategies, structure, and approaches to labor, customers, investors, and the greater community.” While such definitions are helpful in understanding what corporate culture is, it also can be useful to have some examples. OCAI Online uses what it calls the Competing Values Framework to help illustrate and define four types of corporate cultures. The Organizational Culture Assessment Instrument (OCAI) was developed by University of Michigan business professors Robert E. Quinn and Kim S. Cameron. The framework focuses on four distinct types of company cultures. Clan CultureClan cultures have a friendly, collaborative culture and can be compared to a large family—i.e., a clan—where people have a lot in common. Strong bonds of loyalty, tradition, and commonality generally form. Examples of companies that may have a clan culture include Google, Zappos, or Tom’s of Maine. Adhocracy CultureThe root word here is “ad hoc.” An adhocracy is a dynamic and innovative environment where employees are willing to take chances and leaders are typically seen as inspirational innovators willing to challenge assumptions and take risks. Core values reflect change and agility—this is not the type of culture where employees are likely to hear, “We tried that already, and it didn’t work.” Think Facebook and any variety of tech companies that must stay nimble and innovative to remain competitive. Market CultureA market culture is a culture in which the goal is to get down to business, get work done, and achieve results. This is often a competitive environment, even among coworkers. The purpose of being at work in a company with this type of culture is to make as much profit and capture as much market share as possible. Amazon is a great example of this type of company, and Jeff Bezos is known as being a demanding taskmaster. Apple, under Steve Jobs’ reign, is another example. Hierarchy CultureProcess and procedure are everything in a hierarchy culture. Leaders are there to monitor and facilitate adherence to tried and true ways of doing business. Costs and mistakes are kept low by following the rules and the guidelines that have gotten the business this far in the first place. Government organizations are good examples of this type of culture, as are organizations where safety is a primary concern—health care and aviation, for example. |
What are the 4 types of corporate culture
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