A strong culture of the organization is crucial to fostering the qualities necessary for success in business. A good culture can foster creativity, productivity, and team spirit, which in turn leads to increased profitability. There are many factors that go into creating a great organizational culture, but some key components include clear communication, strong values and ethics, and a supportive environment.
A well-developed culture allows businesses to capitalize on their unique strengths and tap into their employees’ development & potential. By fostering a positive environment where employees feel valued and connected to the company goals, businesses can create an unstoppable force that will carry them forward toward success.
What is the culture of the organization?
The culture of the organization is the way employees view and interact with one another within an organization. It can be defined as the shared beliefs, values, and norms that exist within an organization. Culture is created through the interactions of employees, and it can have a significant impact on employee benefits, productivity, and satisfaction.
There are several factors that contribute to the development of organizational culture. These include the organizational structure, human resource management strategy, and the company’s mission, values, and goals. In addition, employee perceptions of their work environment play a significant role in how they behave on the job.
Ultimately, the culture of the Organization is shaped by the collective thoughts and behaviors of its members. Therefore, it is important for managers to create a positive environment that encourages creativity and innovation.
Why is the culture of the organization Important?
Culture is one of the most important aspects of an organization. It sets the tone and expectations for employees, customers, and other stakeholders. It can influence how people think, act, and communicate. And it can have a significant impact on company performance.
There are many factors that contribute to an organization’s culture. The nature of the business, the values that are espoused by the organization, how employees are treated, what perks they receive, their performance evaluation, and how they’re encouraged to develop are all important.
In some cases, a change in organizational culture can be difficult to implement. It may require a concerted effort from leadership and everyone involved in the organization. But if done correctly, a culture change can lead to improved performance and greater success for the company.
4 types of organizational culture:
The most well-known classification of culture in an organization is known as the Competing Values Framework. Kim Cameron and Robert Quinn at the University of Michigan identified four distinct kinds of culture in organizations.
Each organization has its own unique mix of these four cultural kinds, with one type usually dominant. The bigger the company more likely that there is more than one culture within the company. This can be beneficial for the company, but it could also be detrimental or even difficult to establish a common culture within a globally and regionally scattered organization.
The four cultures of an organization Cameron as well as Quinn have identified include:
- The Adhocracy Culture The active business-oriented Create Culture.
- Clan Culture The people-oriented and friendly Collaborate culture.
- Hierarchy Culture is the structure-oriented, process-oriented Control Culture.
- Marketing Culture The results-driven and aggressive Compete Culture.
Let’s look at each culture type and the way to create the types in more specific detail.
Adhocracy can be described as a mix of the words ‘Adhoc” and bureaucracy. Thus, companies with adhocracy cultures are flexible and not stifled by bureaucratic processes and regulations. It is a focus on continual innovation and improvement and the pace is often very fast while the current status quo even though it might be working is likely to be tested.
Many start-ups and tech firms such as Apple, Google, and Facebook are guided by an adherent culture, which gives them the opportunity to be creative. This is essential to their success and brand in a marketplace that is ever-changing and extremely competitive.
When start-ups turn into massive tech giants such as those companies, an adherent style of management will not be feasible across the entire company. There will be certain functional areas or business units which require more organization, and slowing down could be more beneficial to the business such as in the area of ethical conduct and conformity.
Thus, the adhocracy-based culture might be assigned to specific areas to ensure that the company is always innovating and competitive in the marketplace.
“Clan” refers to a close-knit group of interconnected families or groups of individuals with a shared interest. Clan culture is common in family-owned or small enterprises that are not necessarily hierarchical. Employees are respected regardless of their position and the workplaces are friendly.
Companies such as Tom’s of Maine, Redmond (Real Salt), and Chobani could be described as clan-based communities that place a high value on their employees.
This type of culture encourages employees to collaborate in teams by ensuring that all employees feel as if they are equals. They are comfortable giving honest and honest feedback. In addition to the teamwork aspect, there could be an emphasis on mentorship and apprenticeship, as skills, as well as values, get passed down from generation to generation.
It is common to see high employee participation in this type of environment, which results in exceptional customer service. But the drawback to this kind of style of culture is that it’s difficult to sustain it when the business expands. There may be a lack of focus and fluidity as the company expands.
A hierarchy-based culture is a common business culture throughout the US. This is defined through the structure established procedures, as well as different levels of authority. The employees in this culture are aware of exactly where they belong within the hierarchy of command, who is in charge of them, whom they have to report to, and what the company’s rules are. It’s essential for employees to follow the rules.
The duties are clearly defined and processes tend to be simplified. Health insurance, financial institutions, companies, as well as oil and gas businesses all have a hierarchy-based culture. This type of corporate culture allows them to control risk more effectively, and to be solid and efficient in their operations.
But, it can make them less innovative flexible, agile, and responsive to rapid changes in their markets or industries. They may not have the flexibility required in the current and future markets.
Market culture is about profit margins and keeping ahead of the market. It’s result-oriented and has an intense focus on the external to ensure that customers are happy. Examples of companies that have been influenced by the culture of the market are Tesla, Amazon, and General Electric.
Top-quality products and services are crucial for their success. Companies and there is always a demand to think outside the box and bring innovative or better products to the market ahead of their competitors. While this type of environment could ensure the long-term viability of the company but employees can be exhausted due to the pressures and constant demands to produce. There could be less focus on the employee experience or the satisfaction of employees.
Developing Organizational Culture Made Easy:
The culture of the organization will evolve without your involvement However, if there is no indication of this direction, it will not be productive or healthy. Take these three principles in mind when you are developing your company’s culture which includes recognition, communication, and actions.
Following the steps in this article, you can increase communication with your employees, establish an atmosphere of recognition and ensure that everyone on your team is putting the culture into action.