12 Types of Organizational Culture and Ways to Change Yours

 

4 Attributes of Culture

In an article published by the Harvard Business Review, researchers identified four common elements of culture. These elements can be seen in almost any company culture across the globe.

 

Culture is shared. Your company culture isn't defined or affected by a single individual. It is fostered through the behaviors and values of the majority. That also means that one tenacious HR leader's actions will never be enough to shift the culture. If you want to make a change, it will take intentional effort and buy-in from everyone.

 

Culture is enduring. Your organisation's culture has a long-term effect on the way you choose to treat your employees and do business. Researchers who have studied corporate culture assert that it's easy for culture to become a 'self-reinforcing social pattern.' It's the birds of a feather conundrum - once your culture is established, you're going to attract and retain workers who resonate with the culture you've built.

 

Culture is pervasive. It impacts nearly every aspect of your organisation, from the physical environment to the mindset of your company leaders and employees. Basic underlying assumptions are engrained most deeply.

 

Culture is implicit. You don't have to identify your culture by name for it to impact your employees. Even if you're not explicitly striving for a clan culture or a control culture, prospective and current employees can look at different aspects of your organisation and understand what working there is like.

 

4 Types of Organisational Cultures

 

 

Business professors Kim Cameron and Robert Quinn spent years researching company culture. From their research, four main types of organisational cultures emerged, which Cameron asserts can be used to classify nearly 90% of organisations across the globe.

It's rare for companies to fall perfectly under one single workplace culture; rather, most businesses are a mixture of these cultures, with one being the most prominent. Which one resonates most with the way your company functions?

 

Clan Culture

"We're all family here," is a familiar line in any company that has a clan culture.

Done well, a clan culture contributes to an overall positive work environment where employees feel valued and morale is high. However, it can also become too much of a good thing, like a parent forsaking the rules as they try to be best friends with their teenager.

Clan cultures are common in family-owned businesses and smaller businesses. However, it's not impossible in large corporations. Patagonia is known for its family-like atmosphere. The company's founder notes that they want to hire people who "treat work as play" and emphasises that their "best efforts are collaborative."

 

Advantages

In this collaborative culture, there is an emphasis on teamwork. Mentorship opportunities are frequent because leaders are invested in the success of their employees. There's often a trickle-down effect that goes beyond workers; happy employees tend to provide stellar customer service.

 

Disadvantages

The family-like structure of a clan culture may be hard to maintain as a company expands, which can contribute to growing pains when companies experience massive growth. A horizontal management structure may blur the lines between employees and managers and result in an overly relaxed work environment that allows responsibilities to slide.

While valuing employees as people and individuals is conducive to a thriving corporate culture, it can also become difficult for leaders to make tough decisions that prioritise the company over the workers, even if such choices are necessary.

 

How to develop a clan culture

Communication is one of the key factors in developing a strong clan culture. Managers should welcome open and honest feedback from employees, ultimately removing the invisible barrier that can exist between workers and leaders.

 

Hierarchy Culture

Procedure and structure are highly prioritised within a hierarchy culture. With a clear chain of command, everyone knows exactly what their role is and where they fall within the company structure.

Hierarchy cultures are common in industries where oversight is a necessity, such as banking, healthcare, public administration, education, insurance, law enforcement, and the military.

 

Advantages

This workplace culture can be conducive to productivity and success because of such an organised environment. Some employees may thrive in a role where they have a clear list of responsibilities and know exactly who they report to.

 

Disadvantages

The authoritarian leanings of a hierarchy culture can be stifling to creativity and innovation. An emphasis on authority and boundaries may prevent open and honest communication between people at different levels of the organisation so that leaders never receive authentic employee feedback.

 

How to develop a hierarchy culture

A hierarchy culture requires, well, a hierarchy. To create a structured and formal work environment, you'll need to create -

• Defined roles and responsibilities
• Standard operating procedures for key tasks and processes
• Organisation charts that outline the hierarchy and reporting structure within your company
• Performance management systems that follow set criteria
• Formal communication channels
• Feedback mechanisms

Market culture

Profit, quotas, and metrics are all priorities in a market culture. Every decision is made based on how much money it can earn the company, and employees are encouraged to compete against one another in order to be the best. The company's success relates directly to employee performance.

Market culture can be seen in industry giants like Amazon, Microsoft, Coca-Cola, and Proctor and Gamble. These companies rose to the top of their industries by emphasising competitiveness and customer satisfaction.

 

Advantages

Market cultures tend to get results. It's a surefire way to consistently boost your profits and promote your latest product launch. Employees who work hard and succeed are often rewarded with promotions and bonuses, and let's be honest, money is a strong motivator. Some people will thrive in this sort of cutthroat environment.

 

Disadvantages

The constant competition to bring in the most money can lead to a toxic work environment where employee engagement is low and burnout is high. Your employer brand may take a hit and it could be tough to attract top talent.

 

How to develop a market culture

It's important to know that it can be challenging to foster an effective market culture without compromising your company values (unless you're Mr. Scrooge). For many organisations, there are better ways to boost your bottom line that don't involve sacrificing a positive employee experience.

If a market culture truly is your goal, implement strategies that help mitigate some of the drawbacks. Promote teamwork to encourage collaboration and prevent people from feeling isolated. Support your employees' well-being by offering plenty of time off and an employee assistance program that includes mental health resources.

You can also foster a culture of recognition alongside your market culture by launching an employee recognition program. In doing so, you set the stage for employees to receive frequent and authentic recognition that celebrates their efforts and achievements. For companies who are ready to prioritise market growth and their employees, partnering with Terryberry can provide a much-needed balance.

 

Adhocracy Culture

Organisations with an adhocracy culture value constant innovation and risk-taking. It's the opposite of a bureaucracy - rules and processes are thrown out the window.

An authentic adhocracy culture is most likely to be present in an organisation that could best be described as 'fresh' or 'cutting-edge.' Adhocracy cultures commonly occur in industries where creativity and adaptability are vital, such as software development, advertising, entertainment, EdTech, and design.

Google is a shining example of an adhocracy culture. Their emphasis on creativity resulted in the 20% rule - employees have been encouraged to spend 20% of their work time on projects unrelated to their immediate tasks, the kind of work that doesn't pay immediate dividends but has resulted in advances such as AdSense and Gmail.

 

Advantages

Creativity and engagement are encouraged in an adhocracy culture. Some employees will thrive in an environment where they are trusted and supported to be as creative as possible.

With high risk can come high reward, so there are often financial benefits to fostering an adhocracy culture.

 

Disadvantages

Companies with an adhocracy culture may involve a high-risk business strategy. That's great when you see success, but not so ideal when the new business flops.

A strong emphasis on coming up with new ideas that disrupt the status quo can also lead to burnout or scare away prospective employees before they're even hired, especially if they're risk averse. This can cause an imbalance of employee skills, with a large number of creative innovators and few logical, process-oriented individuals to keep the day-to-day operations running smoothly.

An adhocracy culture works well in smaller organisations where management can provide some sort of oversight, but the focus on individualism and creativity may result in inefficiency as a company grows to multiple departments and multiple people or teams within each department.

 

How to develop an adhocracy culture

Found a tech startup.

(We're joking. Kind of.)

The ability to foster an adhocracy culture has a lot to do with what kind of industry you're in and what stage your company is in. If you want to encourage the kind of thinking present in adhocracy cultures, strive to create a supportive work environment where it's safe to rock the boat with unconventional ideas.

 

8 More Common Company Cultures

 

 

Cameron and Quinn are far from the only researchers who have invested years into examining the attributes and types of organisational culture. Authors of The Leader's Guide to Corporate Culture identified eight culture styles that are classified based on their emphasis on independence vs. interdependence and stability vs. flexibility.

 

Purpose Culture

Companies with a purpose culture value flexibility and interdependence. There is an emphasis on the company's long-term mission, and you may find that employees share altruistic values as they 'work toward a better tomorrow.' This culture can often be found in companies whose mission focuses on sustainability or social responsibility.

 

Caring organisation culture

Priority is given to interdependence and flexibility in organisations that have a caring culture. Employees who work here may describe their organisational culture as warm and personal. In this positive culture, managers encourage employees to work as a team and support each other whenever possible. However, too many cooks in the kitchen can slow your efficiency and stifle creativity as people learn toward groupthink.

 

Order Organisational Culture

This organisational culture focuses on respect and structure, mirroring many of the core values seen in a hierarchy culture. Employees are expected to follow the rules and 'stay in their lane.'

With such esteem placed on structure, however, there is little room for creativity and innovation. While long-time market giants may find success with a culture of order, startups and companies in the creative space may struggle with such a company culture.

 

Safety Organisational Culture

A safety culture is one that might appeal to Boy Scouts, encouraging employees to be cautious and prepared. Work is predictable and every possible risk is accounted for.

However, too much risk management and adherence to standardisation can result in inefficient bureaucracy. When every decision takes nine days and four teams of people, over preparedness can bog down your work.

 

Authority Organisational Culture

An authority culture values stability and dependence. Leaders take ownership of most decisions and employees strive to gain a competitive edge over one another.

Unfortunately, you've probably seen enough superhero movies to know that, in the wrong hands, power can corrupt. Giving managers too much authority can cause office politics and keep employees from feeling safe at work.

 

Results organisational culture

Companies that foster a results culture value independence and stability. Much like a market culture, however, the emphasis on achieving results can cause stress and burnout in employees and discourage teamwork and collaboration.

 

Enjoyment Organisational Culture

In an enjoyment organisational culture, the emphasis is on independence and flexibility. The company culture may be described as fun-loving and playful. Autonomy and morale are high, but like a clan culture, too many blurred boundaries can hinder productivity or even result in compliance issues.

 

Learning Organisational Culture

Flexibility and independence rank highly in a learning culture. Employees are encouraged to remain curious and explore new ideas. Professional development opportunities are frequent in an organisation with this culture.

 

How to Change Your Organisational Culture

 

 

There's always a chance that you take a good look at your organisational culture and realise you don't like what you see.

The good news is that you can change that culture.

The bad news is that it won't be an easy feat.

Let's talk about what needs to happen.

 

Step 1: Determine your ideal company culture

Consider what you want your culture to look like by asking yourself-

• Which types of organisational culture resonate most with your company values?
• What customer experience do you want to provide?
• What types of organisational culture will help your company succeed?
• What gaps exist between the culture you have and the culture you want?

Step 2: Assess your current culture and gather feedback

Survey employees about their perceptions regarding your current culture. You can use a Likert scale to gather data and analyse the responses for helpful insight. Ask employees to respond to each statement on a scale that includes strongly disagree/disagree/neutral/agree/strongly agree.

• The overall culture of our company is positive.
• I feel comfortable expressing my ideas and opinions to my manager and colleagues.
• Management values and listens to employee feedback.
• I have opportunities to collaborate with colleagues from different departments.
• I feel comfortable taking risks in my work.
• [Company] supports a healthy work-life balance.
• I am satisfied with the company’s recognition programs and incentives.
• I am satisfied with the opportunities for professional growth and employee development.
• The company’s values are reflected in day-to-day operations and decisions.
• I would recommend [Company] as a great place to work.

Include statements that pertain specifically to the topics you're most concerned about or believe the current culture could be improved upon. Leave space for employees to add written/typed feedback as they may be able to pinpoint specific problem areas you've overlooked.

It can also be beneficial to determine what areas in the employee life cycle are negatively shaping your organisational culture. You may discover that you're not hiring employees who mesh with your company mission or a lack of learning opportunities is preventing employees from achieving the results you want to see.

 

Step 3: Get buy-in

Remember how culture is shared and enduring? There's no chance of altering your organisation's culture unless everyone (especially leadership) is on board.

This may require some hard conversations, especially for founding leaders who helped establish the current company culture. This is the perfect time to lean on the data. What did employees have to say about the culture? What aspects of culture are negatively impacting the customer experience or company earnings?

You need your leaders to buy into your new organisational culture initiatives, and if you can get employees to join in the change from the beginning, the sooner you'll see improvements.

 

Step 4: Make the change

And then make it again.

Altering your organisational culture is going to take time, and it's going to involve one or two (or a dozen) tweaks. Continue to gather feedback from employees so you can learn what new processes are working and which ones need to be changed to best support your future culture goals.

 

What About a Recognition Culture?

We can't forget to mention our favorite organisational culture - a recognition culture. In this culture, frequent formal and informal recognition are an integral part of day-to-day operations. People throughout the entire organisation celebrate each other's big and small wins.

As a result, the company experiences higher employee engagement, increased motivation, and an overall more positive work environment.

If you're not sure how to cultivate a culture of recognition in your workplace, we'd love to help. Learn how Terryberry can simplify and streamline the employee recognition process with one powerful platform.