Essentially, culture influences every part of a business, from public views of brands to employee contentment at work and corporate profitability. Improvements must be driven by the organization for companies to achieve excellent adaptability. In general, no two different cultures are identical; an industry or a company’s culture will typically influence its culture to some extent, but that doesn’t imply it can’t be modified. Fortunately, culture is not static and may develop in response to the demands of the company.
This article will cover five basic forms of business culture. We must recognize that there is no ideal or worst organizational culture; each has benefits and drawbacks. This is extremely important and should be investigated further so that it can be utilized as information for reflection. What characteristics describe the culture in your organization?
- TEAM-FIRST CORPORATE CULTURE
Is a business that hires people based on their culture first, with skills and experience coming in second. Employee engagement will be a primary goal for companies with this culture.
Bonding with the team is a fantastic opportunity to offer feedback; organizations that embrace this culture will be more flexible to the members’ and team’s family lives. An excellent example is Netflix, which provides limitless family leave and vacations. Employees have the freedom to choose what is best for them, and in exchange, they are expected to dedicate themselves to the organization.
Companies with this culture believe that happy staff leads to happy consumers. This is a fantastic culture to represent for a customer-focused firm since employees who are happy with their jobs would naturally want to express their appreciation by working more for the client.
However, there is a possible stumbling block: the larger the organization, the more difficult it will be to sustain this sort of culture. That is why having a team member committed to culture cultivation is a great strategy for any company.
A characteristic of companies that embrace this culture is that each employee may make friends with employees from various departments, and they interact outside of work regularly. Organizations may also obtain insightful feedback from workers through surveys, and every employee is proud of the company for which they work.
- ELITE CORPORATE CULTURE
Companies want workers who not just follow, but also lead, and who are innovative and bold. Elite corporate cultures pick only the best individuals to drive innovation. Candidates that fit this culture are self-assured, talented, and competitive.
Companies with elite cultures frequently affect the world in many ways. Customers are often other businesses with products that seem to be relevant and capable of competing in the new environment. Companies having this culture are frequently referred to be innovators.
A fascinating example is SpaceX, which is the next level of an innovative and reasonably new corporation capable of great accomplishments in aerospace production and even space transportation. According to the report, the staff is glad and satisfied that they have launched a rocket, but 60 to 70 hours of work per week are required. Most employees, however, remain motivated because they realize they are performing significant work and have the potential to make history.
If not correctly implemented, this culture can lead to employee rivalry and put pressure on employees to always be engaged. Some initiatives, such as coworker appreciation, and the company’s care for employees’ physical and emotional wellness, can help to overcome this.
This culture has been adopted by a firm, which can be shown if employees are not frightened to question things that need to be addressed and improved. Employees are also more willing to prioritize work and do not feel burdened while working long hours. The greatest talent will rise quickly in their careers. Furthermore, the organization has a large number of qualified job seekers.
- HORIZONTAL CORPORATE CULTURE
In a horizontal culture, titles do not matter anything. This culture is commonly utilized among startups since it necessitates teamwork that engages everyone. The corporation is very adaptable to changing market conditions, even though in terms of age, this culture is typically adopted by relatively young organizations. Despite the tiny staff size, the organization can give excellent customer service because they understand how much people rely on them.
Positions and credentials do not matter much in a horizontal culture, where contact between directors and office staff takes place face-to-face at their workstations rather than via email or memos. This is an experimental stage in which risk is anticipated and every recruitment must be examined.
A lack of direction and responsibility might result from this horizontal culture. As a consequence, leaders are required to foster collaboration to achieve certain goals and to convey information about who is responsible for what. Horizontal culture does not imply a lack of organizational structure.
Teammates are engaged in discussing new product ideas in the break room, which is one of the hallmarks of companies that embrace this culture. Every employee still has to perform any task. The CEO is also the one who prepares his coffee. And the corporation still needs to convince the skeptics of the product’s worth.
- CONVENTIONAL CORPORATE CULTURE
Traditional businesses often have a clear hierarchy, but most are still overcoming the learning curve for communicating via new media. In reality, companies with this culture have several standards, such as how to dress formally. Furthermore, the organization concentrates on numbers and risk-averse decision-making. Local banks and auto dealerships, for example, exemplify these characteristics. Customers are not always right, thus an exception is still favored for businesses.
Companies with this culture, however, can change faster easily as a result of the digital era. New modes of communication, such as social media and software, are also popular. Constraints may be excellent learning and development opportunities, as long as management does not refuse them. New office technology is generally not a priority for management in these organizations.
General Electric is an interesting illustration because they are relatively conventional and well-known for their cut-and-dry management procedures. However, the firm has recently abandoned traditional performance assessments in favor of more regular discussions between management and staff, and it has even launched an app to assist enable feedback. This is an excellent example of an old-school corporation embracing technology and change.
The normal approach in this culture is relatively short-lived and allows little space for inspiration or experimentation, which can lead to a lack of excitement or resentment from employees for being micromanaged. Making workers understand the company’s objective more deeply can also have an influence on employee confidence to work towards it, even if the worst-case scenario is that they can reject it.
Companies with this culture have strict guidelines for each department and different roles for each person, so they generally do not interact with each other. The CEO makes the most important decisions.
- PROGRESSIVE CORPORATE CULTURE
Uncertainty is a defining element of transitional cultures. Mergers, acquisitions, and market shifts can all contribute to progressive culture. In this case, corporations frequently have greater responsibility to respond to and communicate the vision to employees. Uncertainty is a defining aspect of a progressive culture since employees frequently do not know what to anticipate next.
However, in this position, the corporation may use important changes to define the organization’s new goals or mission and address workers’ most urgent issues. The best things a firm can do to keep employees from leaving are to manage expectations and deal with rumors through continual communication. Change can be frightening, but it can also be beneficial, as savvy employees can attest. They will view change as an opportunity to develop and attempt new things.
Amazon’s acquisition of Whole Foods for $13.7 billion is an example of a company that is still in the process of transitioning. While Wall Street viewed the acquisition as a dream come true, the collision between Amazon’s data-driven mentality and Whole Foods’ empowering culture resulted in a nightmare. In contrast, Disney’s purchases of Pixar and Marvel gave the firm a higher percentage of the box office as well as acclaim for good change management. So the difference is Disney took the effort to determine which perks were most essential to its new workers, pledged to preserve those benefits, and then delivered on that commitment.
Employees may experience anxiety as a result of a progressive culture. Any change in management, no matter how beneficial, is not always seen favorably. Communication is crucial in overcoming these concerns. It’s also a wonderful opportunity to hear employee input and issues, as well as keep top personnel motivated.
Employees who freely discuss competitors and potential acquisitions are an indication of a firm with a progressive culture. The firm has a high turnover rate, and market fluctuations have an impact on the company’s profitability.
So, which of the following corporate cultures is most similar to the one you currently work for? Taking characteristics from each that are most suited for the organization is, of course, a wonderful approach, and if anything does not match with the company’s objectives, it may be left out. As a result, every organization needs a culture that is not only passive but also adaptable to the demands of your workforce.
ACT Consulting has been committed to helping businesses discover solutions to various challenges in the organization for over 15 years. ACT Consulting believes that deliberate initiatives are required to build, expand, and sustain an organization. ACT Consulting International is committed to being your best partner by implementing a precise, quantifiable, and focused transformation on “leadership & people, business, and culture”.