Definition of organizational culture?
The Latin word “colere,” which meaning to tend or cultivate, is where the word “culture” first appeared. Organizational culture, to put it simply, is the way that leadership tends to, nurtures, or looks after its stakeholders, workers, and business. The uniform organizational behaviors of leaders and staff are referred to as the culture (norms).
The accomplishment of an organization’s strategic goals is facilitated by its organizational culture, which also draws in the right workers and helps those who might not fit stick out. Key stakeholders and consumers are also targeted by its marketing. Organizational culture frequently reflects the leadership of the organization and reflects its basic beliefs.
How decisions are made—top-down or bottom-up—and whether or not staff members feel free to voice their own opinions and views without worrying about being judged are two indicators of an organization’s culture.
Types of Organizational Culture
There are four primary types of workplace cultures, according to University of Michigan academics Robert Quinn and Kim Cameron. The Adhocracy Culture, Clan Culture, Hierarchy Culture, and Market Culture are examples of these.
Adhocracy culture
Adhocracy-oriented organizations encourage creativity, taking calculated risks, and pushing the envelope. They are aware that taking unprecedented actions is necessary to bring about significant change. Whether they’re creating new technologies or upending an entire sector, it is true.
Furthermore, in order to innovate, one must occasionally fail, reflect, and adjust direction. For this reason, another essential component of adhocracy culture is adaptability.
Adhocracy cultures are results-driven even though they welcome failure and course correction. Although we welcome new ideas, they must be connected to the expansion and development of the business.
Employees are encouraged to “think outside the box” and provide creative solutions to issues in an adhocracy culture. Higher levels of creativity and engagement may result from this.
Adhocracy culture does, however, have several disadvantages. For instance, not every type of person should work in a workplace where they are always required to come up with fresh, creative ideas. Indeed, it may even cause higher levels of burnout in certain people. Adhocracy cultures encourage risk-taking, but it’s crucial to keep in mind that not all chances will benefit the business. This may result in expending a great deal of time and effort on ideas or initiatives that don’t work out in the end.
Clan culture
Clan culture, as its name implies, is centered around the “clan.” or, to put it another way, the employees of a company.
The core business ideals of a clan culture are cooperation and teamwork. Above all, employees are valued, and interactions inside the organization are generally characterized by the idea that “we’re a family.” A “hands-on” approach to people management is also common. Leaders in this culture actively participate in coaching and developing their team members.
A clan culture can result in many advantageous things. Better employee engagement, retention, and a more satisfying work environment are all examples of this.
Prioritizing staff members can also benefit consumers in the long run. When workers are content, involved, and feel cared for at work, they will treat clients with the same consideration and decency. Higher customer satisfaction and an improved overall customer experience may result from this.
Clan culture has several advantages. But there are certain difficulties as well. As an organization expands, it may be challenging to preserve this kind of culture. For this reason, among all the other kinds of company cultures, this one is most appropriate for startups and smaller businesses.
Market Culture
For some businesses, the most important things are success, profit margins, and their bottom line. And those businesses? They have what is referred to as a “market culture.”
Everything in a market culture is results-driven and linked to the success and financial performance of the business. Financial data, measurements, and quotas are highly valued. Every choice taken by the company and its members is evaluated financially. This includes choices that directly affect how well the business performs. (Consider new product introductions or marketing tactics). Indirectly connected items are often included (such employee benefits or wellness initiatives).
Market cultures typically have numerous established tiers of administration and leadership, in contrast to clan cultures, which frequently have corporate executives interacting directly with employees. Additionally, the levels are usually distinct from one another. (Therefore, a firm leader is unlikely to mentor a lower-level employee).
The primary advantage of a market culture is: outcomes. Market cultures are typically profitable because they put money before all other considerations. The main disadvantage, though? Employee engagement may suffer in a workplace where it’s simple for workers to feel like simply another gear in the machine. There’s also a significantly larger chance of burnout in this results-driven environment, which can result in high turnover.
Hierarchy culture
Hierarchy culture is the antithesis of adhocracy culture, which values taking chances. It all comes down to tradition, structure, stability, and predictability.
A corporation with a hierarchy culture has a well-defined and established order. There are several levels of separation between the workforce and the leadership under this arrangement. Additionally, there are well-defined procedures and systems. The aim of hierarchical culture is to have the organization run like a well-oiled machine and to stay true to what is successful. Traditional businesses are especially fond of hierarchical cultures. It’s also a well-liked option for businesses that require a lot of systems, procedures, and structure in order to run well.
7Additional types of workplace culture
Although Quinn and Cameron’s company cultures are the most well-known, there are other forms of workplace cultures as well. Other forms of organizational culture that you could encounter at work include:
Culture that is positive. Creating a nice, encouraging work atmosphere is prioritized above all else in a positive culture.
Culture has a purpose. The mission and basic values of the organization shape the culture of a purpose-driven workplace.
Culture of feedback. Feedback is encouraged, welcomed, and integrated into the company’s core values in a feedback culture. Both formal and informal feedback are included here. It also covers input from managers to employees as well as from employees to supervisors.
Mentoring the culture. Business executives that operate in a coaching culture approach management as mentorship. To assist their staff in realizing their full potential, they deploy coaching strategies.
Culture of accountability. Many companies are concentrating on developing an accountable culture in the modern workplace. This implies that everyone working for the organization, from interns to the CEO, is responsible for their own activities. Furthermore, the business is responsible for its actions as a whole.
Manage the culture. Some organizations use fear as a tool of control over their teams. This is referred to as “control culture,” and it can have very negative effects on both the worker and the company.
Gaining knowledge of culture. The emphasis is on professional development in a learning culture. Generally speaking, businesses with a learning culture have strong L&D initiatives. They make investments to support their staff members’ personal and professional development.
How HR and leadership influence company culture
People operations, often known as human resources management, encompass company culture. Additionally, HR divisions can significantly influence company culture.
However, how? What direct effects on company culture can HR make?
Using employee feedback and insights to drive culture decisions
Receiving employee input is one of HR’s most crucial responsibilities. comments regarding what’s doing well, what isn’t, and what needs to be changed. HR directors can then utilize the feedback to inform choices about culture.
Let’s take an example where you are examining the findings of your employee engagement survey. Also, you might discover that once workers went back to work following COVID, morale suffered. In such instance, you might present the statistics to the leadership and argue in favor of adopting a hybrid work culture.
The main idea is that HR directors have access to priceless employee input. They also possess the authority to make choices that impact the culture of the organization. And by mixing the two together? They have the power to positively impact team culture within the organization.
Converting organizational ideals into functional policies, guidelines, and procedures:
Company values ought to guide company culture. However, it might be challenging to recognize overarching principles like “integrity” or “sustainability” in a company’s day-to-day activities.
That’s the role of HR. The task of converting corporate values into workable rules, procedures, and processes falls to HR. And it is these processes, policies, and procedures that give the organizational culture its values.
Let’s take an example where your company is putting people first and adopting a clan culture. HR would be in charge of putting in place the rules, guidelines, and procedures required to convey to staff members that they are important members of the team. (For instance, introducing a wellness program for staff members or providing more affordable paid time off).
Or suppose your company is creating a culture that emphasizes equity, diversity, and a sense of belonging. Leading the company’s diversity strategy and implementing DEI procedures is HR’s responsibility. They may, for instance, update the employee handbook to make it more inclusive. Alternatively, they might change the company’s recruiting and sourcing practices to attract a more varied staff.
In summary? Corporate values are an idea. Organizational culture is palpable. The division that connects the two is HR. HR transforms abstract core ideals into observable rules, guidelines, and procedures.
Helping to foster needed change
As previously said, HR establishes the rules that shape corporate culture. So, is there anything in the current culture that needs to be altered or improved? HR is able to promote the urgently required culture shift.
Let’s take an example where leadership discovered they had been adopting a market culture. However, they wish to start prioritizing treating their staff members fairly. In order to promote such culture shift, HR would take the lead. To help leaders become proficient in new leadership practices, for instance, new regulations may be written or training sessions could be scheduled.
How to choose the best type of organizational culture for your team
Your corporation may employ one of several organizational cultures. So how can you select which one is ideal for your team?
Specify the values of your company.
Your basic beliefs ought to guide the culture of your company. So how do you decide which organizational culture is ideal for your team? You must clarify your personal principles.
Compare your core values.
considering the various corporate cultures. Once you are aware of your company’s values, evaluate how they align with the various workplace cultures. You should search for alignment. A market culture would be consistent with your basic values, for instance, if “achievement” is one of them. You’d probably benefit more from clan culture if “people first” is one of your core beliefs.
Consider the advantages and disadvantages.
Every organizational culture type has advantages and disadvantages. And you need to consider those advantages and disadvantages before deciding which culture is ideal for your team. There are more benefits than drawbacks to the ideal team culture, at least from the standpoint of your company.
Ask your team for their insights.
Are you wondering how to determine which organizational culture type is best for your team? Question them! Solicit from your team what kind of culture would enable them to produce their best work. Create an organizational culture that satisfies their needs after that.
How to adopt a new organizational culture
The various forms of organizational culture are known to you. You have the knowledge to select the ideal work environment for your group. Let’s now examine the application of that culture.
To put a new organizational culture into effect, follow these steps:
Examine your existing culture and note any holes.
Request input from the workforce.
Formulate a strategy.
Obtain support from the leaders.
Keep an eye out and adjust as needed.
Let’s examine each phase in greater detail:
Examine your existing culture and note any holes.
A thorough assessment of your current corporate culture is necessary before implementing a new one. The differences between the culture you already have and the one you’re attempting to create can then be found.
Your approach will be guided by your understanding of the differences between your present and ideal cultures.
Request input from the workforce.
The ultimate goal of implementing a new organizational culture is to make your team stronger. So, prior to making any significant adjustments? Get input from the people in your team.
Request input from your staff regarding the culture. What they would like to see changed, what is and is not working, and what kind of culture would be most effective for them. After then, let the input guide your strategic choices.
Formulate a strategy.
It’s time to truly develop your strategy after you’ve assessed your current culture and gathered feedback from your staff.
Make a detailed, workable plan outlining how you want to apply your new corporate culture. What objectives do you have? How are you going to assess achievement? Which processes, rules, and procedures will you put in place to support this new culture?
Consider this strategy as a roadmap. It should outline the steps necessary to go from where you are now to where you want to be in terms of business culture. And it need to do it with as much specificity as feasible.
Obtain support from the leaders.
A new organizational culture requires resources and support in addition to time and effort to implement. And how can one obtain those resources and that support? Obtain support from the leadership.
Get leaders to support your cultural plan by presenting it to them. Request their opinions. Include them in the process of introducing the culture to staff members.
Organizational culture originates from the top and spreads downward. And the more engaged and dedicated your leadership group is to your brand-new corporate environment? The more successfully it can be applied throughout the entire company.
Keep an eye out and adjust as needed.
The process of implementing a new organizational culture is not a one-time event; some initiatives will succeed while others will fail. If you want your new culture to be adopted by your team and have a positive overall impact, you must monitor its adoption and make necessary adjustments.
For instance, if you’re trying to lock in more efficient processes and implement a hierarchy culture, and your employees complain that it’s too rigid, you should be willing to listen to their concerns and make necessary changes.
The corporate cultures that adapt, grow, and change alongside their staff are the greatest. Thus, when you’re putting a new corporate culture into place? Keep an eye on how it’s going with your staff, and be prepared to adjust, pivot, and change course as needed.
Select the corporate culture that works best for your group.
You want to put in place an organizational culture that benefits both your staff and your business. What remains to be done after you have a thorough understanding of the many forms of organizational culture and how to select the best one for your team? Take action and establish a positive working culture for both your staff and your business. (And see how that helps your organization grow).
