Culture has an impact on every area of your company, from the public image of your brand to employee job satisfaction to your financial line. Because so much is at risk, your corporate culture must be malleable and open to improvement. This begins with being able to articulate what kind of culture your company has.
Discover the different types of company culture and learn some ideas from examples to incorporate in your company. <\/p>\n\n\n\n
Company culture refers to a company’s and its employees’ attitudes and practices. It can be seen in how employees connect, the values they hold, and the decisions they make.<\/p>\n\n\n\n
Work atmosphere, company mission, leadership style, values, ethics, expectations, and goals are all examples of company culture.<\/p>\n\n\n\n
Organizational culture, corporate culture, and workplace culture are all terms for the same thing.<\/p>\n\n\n\n
A company’s culture might be explicitly and purposefully fostered, or it can simply be the product of a series of decisions made over time. Employees that work in a company with a strong culture understand the expected outputs and behaviors and act appropriately.<\/p>\n\n\n\n
Some firms have a team-based culture that values employee engagement at all levels, whereas others have a culture that values formal, traditional, or hierarchical management.<\/p>\n\n\n\n
When you work for a company with a traditional management style, your job responsibilities will be well defined, but there may be no prospects for advancement unless you go through a formal promotion or transfer procedure.<\/p>\n\n\n\n
Employees in a more informal workplace frequently have the flexibility to take on new initiatives and positions as time allows.<\/p>\n\n\n\n
Netflix is one example of a company culture that is encapsulated in its motto of “people before the procedure.” Netflix’s company values are outlined in its company culture document: judgment, communication, curiosity, courage, passion, selflessness, innovation, inclusivity, integrity, and impact. Employees are required to uphold these values in all of their actions and interactions, resulting in a creative, collaborative, and successful firm.<\/p>\n\n\n\n
If you want to work for a company that is enjoyable to work for, consider the company culture while considering possible employers.<\/p>\n\n\n\n
Team-oriented firms prioritize culture fit over skills and expertise<\/em><\/strong>.<\/p>\n\n\n\n Employee engagement is a primary objective for a company with a team-first corporate culture. A team-first culture is distinguished by frequent team trips, opportunities to provide relevant feedback, and flexibility to accommodate employees’ family lives. Netflix is an excellent example because they provide limitless family leave and vacation days. Employees are given the freedom to choose what is best for them. In exchange, they are expected to be devoted to the company.<\/p>\n\n\n\n Why? Because they understand that happy staff leads to happier consumers. It’s a terrific culture to exemplify for any customer-focused company. This is because staff are more likely to be content with their work and want to show their thanks by going above and beyond for consumers.<\/p>\n\n\n\n Zappos is known for its lighthearted culture, as evidenced by this parody starring CEO Tony Hsieh.<\/p>\n\n\n\n Zappos is well-known for its upbeat and supportive culture, as well as its excellent customer service. According to CEO Tony Hsieh, “Zappos is a customer service company that happens to sell shoes”. Employees are happy not only because they may express themselves with wacky desk decor (which everyone enjoys), but also because they have the freedom to assist customers in the way they deem fit, rather than following strict standards and scripts. Customers enjoy the clear, personable service in the end.<\/p>\n\n\n\n Potential pitfalls:<\/strong> Maintaining this type of culture becomes increasingly challenging as the company grows in size. As a result, having a team member committed to culture cultivation is a terrific strategy for any company.<\/p>\n\n\n\n If you have a team-first culture, it is possible that:<\/p>\n\n\n\n Companies with elite cultures are frequently on a mission to alter the world through untested means.<\/em><\/strong><\/p>\n\n\n\n An elite corporate culture hires only the best because it is constantly pushing the boundaries and requires employees to not only keep up but to lead the way (think Google). Companies with an elite culture hire confident, capable, and competitive candidates who are innovative and occasionally audacious. As a result, there has been rapid expansion and significant market impact.<\/p>\n\n\n\n Their consumers are frequently other firms that require their products to remain relevant and capable in a new environment\u2014often one created by the elite-cultured company.<\/p>\n\n\n\n SpaceX is a high-profile example of a young (yet inventive) company doing huge things in aerospace production and space transportation. Employees describe being delighted at the prospect of really launching rockets, but expectations are exceedingly high, with 60 to 70-hour work weeks the norm. Nonetheless, knowing that they are contributing to history keeps most employees engaged.<\/p>\n\n\n\n Potential pitfalls:<\/strong> Such intensity might lead to staff competitiveness and workers feeling pressured to always be on. Team outings, peer recognition programs, and wellness efforts can help to combat this.<\/p>\n\n\n\n You may have an elite culture if you have:<\/p>\n\n\n\n Horizontal corporate culture is prevalent in startups because it fosters a collaborative, everyone-pitch-in approach. These are often newer enterprises that have a product or service in mind but are more adaptable and able to modify based on market research or consumer feedback. Although their lower staff size limits their customer service capabilities, they do everything they can to keep the customer happy\u2014their success depends on it.<\/p>\n\n\n\n In horizontal cultures, where contact between the CEO and office assistant often occurs through chats across their desks to one another rather than email or memos, titles don’t mean much. This is the experimental phase when chances must be taken and every hire must be counted.<\/p>\n\n\n\n Basecamp is an excellent example of a successful company that maintains a startup mentality. Basecamp, which was launched as 37Signals, announced last year that it would focus solely on its most successful product and keep its relatively small size rather than growing into something much bigger and broader.<\/p>\n\n\n\n Potential disadvantages include a lack of direction and accountability in horizontal cultures. Encourage teamwork while keeping clearly defined goals and a clear understanding of who is largely responsible for what. Horizontal structure does not imply a lack of structure.<\/p>\n\n\n\n A horizontal culture exists if and only if the following conditions are met:<\/p>\n\n\n\n Traditional businesses have well-defined hierarchies and are still battling with the learning curve for communicating via new media.<\/em><\/strong><\/p>\n\n\n\n Companies that require a tie and\/or slacks are most often of the traditional variety. In fact, any dress code at all, as well as a numbers-focused approach and risk-averse decision making, are symptomatic of more traditional culture. These characteristics are most often exhibited by your neighborhood bank or car dealership. While the consumer is important, he or she is not always correct\u2014the bottom line always comes first.<\/p>\n\n\n\n However, in recent years, many businesses have seen a significant shift in how they function. That is a direct product of the digital age, which has given rise to new kinds of communication. This includes social media and software as a service (SaaS)<\/a>. Traditional businesses still have clearly defined hierarchies today. However, many are struggling with the learning curve for communicating through new means that can blur those divisions. As long as management does not resist this challenge, it can be a great opportunity for learning and growth. While new office technology is frequently low on management’s priority list, more traditional businesses are beginning to experiment with it as more millennials advance to higher-level jobs.<\/p>\n\n\n\n GE, which was founded in 1892, is about as traditional as they come and is well-known for its straightforward management procedures. However, the company recently discontinued its regular performance evaluation in favor of more frequent talks between management and employees. It is even introducing an app to help enable feedback. It’s a perfect example of a traditional company embracing technology and change.<\/p>\n\n\n\n Potential pitfalls:<\/strong> This rigid approach allows little room for creativity or experimentation. This can lead to a lack of passion or animosity among staff as a result of being micromanaged. Getting employees to grasp the company’s bigger objective, as well as putting more trust in them to work toward it, can help to prevent this.<\/p>\n\n\n\n A conventional culture exists if and only if the following conditions are met:<\/p>\n\n\n\n Uncertainty is the distinguishing feature of a transitory culture.<\/strong><\/em><\/p>\n\n\n\n Mergers, acquisitions,<\/a> and market shifts can all contribute to progressive culture. Companies in these scenarios frequently have to answer to investors or advertisements in addition to employees. Uncertainty is a distinguishing feature of a progressive culture since employees frequently do not know what to expect next.<\/p>\n\n\n\n But it’s not all bad news. You can use a big change to describe the company’s new goals or mission, as well as to answer employees’ most pressing queries. The best thing a company can do to keep employees from leaving is to manage expectations and counter rumors through continual communication. Change can be frightening, but it can also be beneficial, as clever employees understand. They will view change as an opportunity to improve and experiment with new ideas. And, ideally, they can persuade their colleagues to join them.<\/p>\n\n\n\n LinkedIn, which acquired Lydia.com before being acquired by Microsoft, is well-versed in transitional culture.<\/p>\n\n\n\n One recent example of a company in transition is Amazon’s $13.7 billion acquisition of Whole Foods. While Wall Street saw the acquisition as a dream come true, the mismatch between Amazon’s data-driven culture and Whole Foods’ empowerment culture caused a bit of a nightmare. In contrast, Disney’s purchases of Pixar and Marvel won the company a larger percentage of the box office as well as accolades for excellent change management. What’s the distinction? Disney took the effort to determine which perks were most important to its new employees, pledged to preserve those benefits, and then followed through.<\/p>\n\n\n\n Potential pitfalls:<\/strong> A progressive culture can make employees fearful. Any change in management or ownership, even if it is beneficial to the company, is not always viewed positively. Communication is critical in reducing these anxieties. It’s also a wonderful opportunity to hear employee feedback and issues, as well as keep top personnel motivated.<\/p>\n\n\n\n A progressive culture exists if and only if the following conditions are met:<\/p>\n\n\n\n Employees cherish company culture because they are more likely to like their jobs when their needs and values align with those of their employers. If you work somewhere where the culture is a good fit for you, you’ll be more productive and create better relationships with your coworkers.<\/p>\n\n\n\n On the other side, if you work for a company where you do not fit in with the company culture, you are likely to enjoy your work far less. For example, if you prefer to work independently but are employed by a company that values teamwork, you are likely to be dissatisfied and inefficient.<\/p>\n\n\n\n Employers care about company culture because employees who fit in are more likely to be not only happier but also more productive. When an employee fits in with the culture, they are more likely to want to stay with the company for a longer period of time. This minimizes turnover and the costs involved with training new workers.<\/p>\n\n\n\n Creating a great work culture is not an easy task, but it is something that each firm can do.<\/p>\n\n\n\n First, let us revisit our concept of company culture:<\/p>\n\n\n\n A company’s culture can be defined as a set of common values, goals, attitudes, and practices that define the firm.<\/p>\n\n\n\n It is vital to recognize that company culture is a naturally occurring phenomenon; whether consciously or unintentionally, your team will build a culture. As a result, begin by determining which of the four types of organizational culture your company adheres to. From there, you may divide the task of developing company culture into two parts: the broad picture and the day-to-day. Let’s begin by breaking down the big picture.<\/p>\n\n\n\n We’ve said it before, but it bears repeating: fundamental values are nothing more than words on paper until they’re put into action. Before applying, the best candidates will conduct extensive research on your company. So, they will be able to determine whether you walk the walk when it comes to your basic values. So, how can you put your basic values into action? Consider the following examples:<\/p>\n\n\n\n This is the first of Facebook’s five stated core values, and it can be found in everything the company does. Facebook is not afraid to take on large projects and push the boundaries. While this can backfire at times, it certainly helps the company recruit and keep like-minded employees.<\/p>\n\n\n\n Squarespace has no trouble living up to its self-professed customer-centricity. Because Squarespace is built on its own platform, the company has an incentive to create the finest product possible.<\/p>\n\n\n\n A highly public leadership shuffle resulted in new corporate values for ride-hailing behemoth Uber, and this is possibly the most intriguing of them. The company’s commitment to keeping to its beliefs was demonstrated by its decision to break ways with its former CEO, as well as numerous other key executives.<\/p>\n\n\n\n When basic values are practiced, they become more than just words. They become the company of a healthy corporate culture.<\/p>\n\n\n\nTeam-oriented firms prioritize culture fit over skills and expertise. <\/h4>\n\n\n\n
#2. Elite Corporate Culture<\/h3>\n\n\n\n
Companies with elite cultures are frequently on a mission to alter the world through untested means. <\/h4>\n\n\n\n
#3. Horizontal Corporate Culture <\/h3>\n\n\n\n
#4. Conventional Company Culture<\/h3>\n\n\n\n
Related: Business Strategy: Levels of Business Strategy+10 Best Business Strategy Examples<\/a><\/h5>\n\n\n\n
#5. Progressive Corporate Culture<\/h3>\n\n\n\n
Related: Mergers and Acquisitions 2023: Differences and Examples<\/a><\/h5>\n\n\n\n
The Benefits of Company Culture<\/h2>\n\n\n\n
Creating a Company Culture<\/h2>\n\n\n\n
#1. Establish Core Values for the Company<\/h2>\n\n\n\n
1. Be Bold <\/h4>\n\n\n\n
2. You must be your own customer <\/h4>\n\n\n\n
3. “We always do the right thing.” Period.\u201d – <\/h4>\n\n\n\n
#2. Establish Company Culture Goals<\/h3>\n\n\n\n