Types of Corporate Culture: Understand Corporate Culture and Its 4 Types

Looking for the types of corporate culture? Then you came to the right place. Here we will discuss corporate culture and its types. Every company must have a unique work culture that is different from one another. This culture was created to make employees more productive and achieving results that are in line with the company’s vision.

More than just a dress code or office interior design, work culture also includes relationships between employees and leadership styles in an organization.

In short, culture is a concept that governs behavior and represents the collective values, beliefs, and principles of organizational members.

Understanding Corporate Culture

Great companies are basically built on a good corporate foundation. One of the foundations of the company is the culture that is applied in it. Without culture, the company’s success will not be realized. The most important thing in determining corporate culture is that it takes employees who have a high desire to work seriously. It’s not just employees who just work for a paycheck.

A strong corporate culture will have a major influence on the success of the company itself. This will help the company in dealing with problems that are often found.

Culture in a general sense means a complex and meaningful collection of values, ideas, attitudes, and other symbols.

Culture is useful for serving humans in communicating. The application of culture does not only apply to ordinary people. The company also applies a culture that is certainly by the habits of the work environment.

Corporate culture or in English referred to as corporate culture is a collection of several important assumptions that are used as the basis or guidelines by everyone in a company.

This assumption contains the basic values ​​that are firmly held. Basic values ​​regarding belief in several things.

The following are ways that you can do to determine the company culture, namely:

It is important to know that not all corporate cultures can be said to be good, but not all corporate cultures can also be categorized as bad.

A good company is one where management and employees can communicate freely. Everyone in the company must be a team that determines what culture is judged to be closest to perfect.

Understand clearly what is meant by culture

Everyone in the company needs to understand the company culture. Corporate culture is closely related to all kinds of traits and habits of everyone in the company. A corporate culture of course must refer to behavior, not to anything else.

Need a mover

When the company is in an unproductive state, it takes someone willing to move. This mover is tasked with strengthening employees about the company culture that must be maintained and the importance of working together.

Give opportunity

There will be some employees who find it difficult to adapt to a new culture or clash with their culture.

Give opportunities for employees who are difficult to adapt to gradually adjust to changes. Of course, this cultural change is something new for some employees but they will get used to it by themselves.

Keeping Commitment

Commitment is the most important part of the corporate culture. It takes a high commitment from all levels to maintain corporate culture.

With a high commitment to culture, this will provide many benefits to the company. When all employees in the company can properly carry out a positive corporate culture, of course, employees will feel comfortable and produce high work productivity.

After determining a good culture for your company, the next step is to develop it to be more positive. This can be done in the following ways:

Employee Health

Companies that want to cultivate a positive culture and want to become a more advanced company need healthy employees.

Employees need to be physically, mentally, and emotionally good to contribute to creating a positive culture. Company leaders must ensure that employees have health care opportunities where they are

Developing an Existing Culture

Building a positive corporate culture doesn’t mean you have to completely erase everything the company has been fighting for.

Also read: Quality Management: Functions, Objectives and Importance

Developing a culture can be done with a question and answer session with employees about what they don’t like about their current culture and work environment.

Leaders must use the aspirations of their employees to help create a positive corporate culture that is appropriate for their workforce. They need it.

Meaning in Employees

A large company of course cannot build a positive culture without meaning behind the work.

Instilling meaning in employees is important to maintain the stability of their work performance in your company. Teach employees about mission, goals, and core values. Explain that their role within the company has a positive impact on both the company and the customer.

Setting Target

Setting company targets is useful for motivating employees and maximizing their work results. It is also useful for strengthening your employee relationships and giving them something to work on. Target is one of the determinants so that the company will continue to advance.

Be a Good Listener

Being a good listener to your employees is the best way to start a positive culture in your company. It is important to make your employees feel valued and well heard.

Have Social Connections.

Relationships with fellow employees at work are an important element for positive company culture. When employees don’t know who their friends are and rarely interact.

Then there is no possible way for a strong culture to be created and to grow. Leaders need to give employees opportunities to socialize in the workplace.

Support the “Champion” Culture

Champion culture is what is meant by employees trying to realize the values ​​and mission of the company.

They are passionate about promoting the company’s aspirations and encouraging others to do the same. This is good for the implementation of the company’s values ​​and mission.

Encourage to Do Positivity

To build a positive culture, leaders need to start by encouraging positivity in the workplace. It is very important to promote positivity every day.

Entrepreneurs must lead by example by expressing gratitude, smiling often, and remaining optimistic in difficult situations. Employees are much more likely to engage in positive behavior when they see their employer doing it.

If the things above are done well, then your company culture will change to be more positive and fun. When your company culture goes well, the employee’s work performance will be better. The productivity of the company will increase and develop more rapidly.

Also read: Understanding the Command Economy System, Characteristics, Advantages, and Disadvantages

Talking about corporate culture, one of the most important cultures that must be implemented by the company is the punctual culture.

4 Types of Corporate Culture

The Organizational Culture Assessment Instrument (OCAI) classifies 4 types of a work culture based on specific parameters.

Divided by company goals and focus, in general, corporate culture is grouped into 4 according to OCAI, namely Clan Culture, Adhocracy Culture, Market Culture, and Hierarchy Culture .

1. Clan Culture

The first work culture is the clan culture.

Like a group or clan living together, this one culture emphasizes the collaborative aspect where its members consider themselves as one big family that is involved with each other.

Organizations that adopt this culture are bound by commitment and tradition, with the main values ​​in the form of teamwork, communication, and agreement. The leadership in the clan culture is in the form of mentorship.

One company known to adopt a clan culture is Toms of Maine, a company that produces various natural body care products. The founder, Tom Chappell, focuses on building good relationships with employees, consumers, suppliers, and the environment.

2. Adhocracy Culture

This culture is based on energy and creativity. Every employee is expected to dare to take risks, with a leader who is seen as an innovator.

The main values ​​that are held are usually based on change, and one of the things that unites the company is experimentation followed by individual freedom.

Facebook is a company that adheres to an adhocracy culture.

Mark Zuckerberg as CEO is famous for his advice which reads “Move fast and break things – unless you are breaking stuff, you are not moving fast enough. (Move fast and destroy other things – you don’t move fast until you break things).

3. Market Culture

Among the 4 existing work cultures, this is arguably the most aggressive culture.

The opposite of clan culture, market culture is actually considered a culture that can hinder the learning process.

This culture does not only emphasize the competitive aspect with competitors in the industry, but also among employees in the organization. Employees will be required to meet difficult goals and their performance will determine the outcome, whether it’s a bonus or a penalty.

Also read: Characteristics and General Criteria for Selecting a Business Location

This emphasis on performance is actually expected to be a motivation for employees to excel. However, many critics argue that this can lead to unhealthy cultures, such as dishonesty and reduced productivity.

4. Hierarchical Culture

Company structure is one of the determining factors in hierarchical culture. Business practices in this culture are determined by the structure, rules, and controls of superiors.

Controlled processes and adequate supervision are considered essential to employee productivity and success. Companies are united by formal rules and policies to achieve stability.

Remember, there is no right or wrong culture. It all comes back to the company’s goals and values.

However, the most important thing is that you work in a company with a work culture that suits you. So, you and the company can collaborate well.