Exploring the 4 Types of Corporate Culture: Which One Does Your Company Embody?
Corporate culture is the collective personality of a company, defining the environment in which employees work and shapes their behavior. It’s critical to have a healthy corporate culture because it can influence factors like employee retention, productivity, and customer loyalty. In this article, we will explore the four types of corporate culture and provide examples to help you identify which one your company embodies.
1. Clan Culture
Clan culture is a family-like environment where employees are teamed, and the organization feels like a tribe. This culture is prevalent in small businesses or startups. In this type of corporate culture, employees are loyal, and the company treats them as a family member. The emphasis is on personal communication, employee involvement, and teamwork.
A widely known example of Clan culture is Google, which emphasizes a fun workplace and employee empowerment. Google provides free lunches, creative workspace, and encourages innovation.
2. Adhocracy Culture
Companies with Adhocracy culture are dynamic, entrepreneurial, and creative. Employees have the freedom to be innovative and take risks, making it easy for the businesses to capitalize on change. In this type of corporate culture, employees value taking risks, rapid change, and potential for growth.
A famous example of a company with Adhocracy culture is Uber. The transportation company was founded with a mission to be unique, innovative, and a leader in the sharing economy. Uber is always experimenting with new products and services.
3. Market Culture
Market culture is results-oriented, competitive, and focused on achieving targets. Companies with this culture are concerned about productivity and getting things done. In this type of corporate culture, employees are committed to delivering results, customer satisfaction, and shareholder value.
Amazon is a celebrated example of Market culture. Amazon fosters a competitive environment where employees are driven to meet ambitious targets. Amazon’s priority is providing excellent customer service, rapid delivery, and the best prices.
4. Hierarchy Culture
Hierarchy culture is bureaucratic, formal, and structured. Companies with this culture have highly defined hierarchies and procedures. Guidelines are consistent to ensure that the company is operating efficiently. In this type of corporate culture, employees focus on completing tasks within their job description, adhering to rules, and avoiding mistakes.
IBM is one of the world’s oldest tech companies, with a culture that emphasizes hierarchy and procedures. IBM has documented policies and procedures. Employees have precise job descriptions and well-defined responsibilities.
Conclusion
In conclusion, understanding the type of corporate culture can help your company understand its identity and how to improve and retain employees. A healthy corporate culture leads to higher retention to increased motivation, improved productivity, and customer loyalty.
Identifying the type of corporate culture is critical to determine your company’s personality and purpose. Use the examples and descriptions mentioned above to analyze your company’s culture and determine ways to make the culture more effective.
A company’s culture can have a significant impact on the overall success of the business. Ensure the culture is clear, positive, and transparent, leading to the overall growth and success of the company.
