Company culture (or organizational culture) is a set of shared attitudes, approaches, and practices that guide an organization. It may start in top-down statements(such as branding, vision and mission statements, or slogans), but itis also bottom-up, arranging day-to-day particulars likedepartmental interactions and company procedures. It is important to note that a company’s stated culture and their day-to-day practices may not always be in sync.
How is culture from company structure?
Culture is different from structure in that structure primarily refers to how the members of an organization relate to one another, or its framework. Structure might also refer to a company’s hierarchy – who reports to whom, etc. Culture is a broader, more overarching term that refers to what the organization and its members value, a common story or beliefs, and practices that enact these values.
What are types of company culture?
Much has been written about the different types of company cultures, and there’s not necessarily a consensus as to a fixed number of types. And of course, every organization has its own unique quirks. However, four broad categories of company culture seem distinct:
Clan
This type of culture prioritizes employees that have commonalities, that see themselves as working towards a common goal, and desire a harmonious work environment. Clan culture says, “we’re all a family”. The benefits, of course, are a shared mindset and purpose. The risk of this kind of culture is the potential for slow organizational growth and disengagement by employees, due to lack of innovation.
Adhocracy/Innovation
This type of culture prioritizes employee innovation and freethinking. Its members are encouraged to spur continual change for the purpose of generating new ideas and growing the company. The risks of this kind of culture are fragmentation and scaling: team members may have trouble cohering and working together on a shared vision (fragmentation), and thus the company doesn’t grow its processes and its size (scaling).
Market/Sales
This type of culture encourages employees to move products to market and to generate customers and sales. This type of culture is highly results-driven. While employees in this type of culture are often highly engaged, there is a risk of burnout and a “whatever it takes” attitude to overtaking the competition.
Hierarchy
This type of culture prioritizes clear chains of command, rules, and completing work through commonly understood procedures. These workplaces tend to be more culturally traditional and risk-averse. Procedures are seen as a way of operating efficiently and capably. The risk of hierarchy culture is that they can be slow or irresponsive to cultural or industry change, and these workplaces may be seen as inflexible.
How is company culture fostered?
Company culture is fostered in a number of ways. From the top down, culture is fostered through clearly articulated company values and goals. These goals offer a framework for organizational practices. Culture is also fostered through structures that help employees to grow, both inside and outside the company. These might be internal training programs, teambuilding programs, or encouraging team members to volunteer within their communities.
Why is thinking about culture important?
Company culture is important because it pervades your organization, whether it’s defined or not. So important, in fact, that management theorist Peter Drucker once said, “Culture eats strategy for breakfast”. If culture is pervasive, then it is worth considering!
Thinking about your company culture means taking the time to be intentional about the shape of it. If you are part of building an organization, and you haven’t done this previously, take the time to name and define your company culture (both real and ideal). For example, how does your workplace culture contribute to the stated goals (mission, vision, etc.) of the organization? How do your processes incorporate and communicate your culture? Are there ways in which current practices don’t communicate your organization’s stated values? This will help you identify the areas of your current company culture that you want to keep, help define areas of growth, and make your culture stronger and more intentional as a result.
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