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4 Types Of Organizational Culture

Creating a winning corporate culture within your organization improves recruitment efforts and leads to higher retention rates. Your company culture directly affects the types of candidates you attract and the employees you hold on to.

While any given company culture will evolve with time — especially as the team grows and onboards new hires — you can take steps to tailor your culture to better fit your organization’s values and mission. Click over here right now to know more about organizational culture characteristics.

organizational culture characteristics
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But first, you need to understand the type of organizational culture that currently exists at your company.

TYPE 1 – Clan Culture

Primary Focus: Mentorship and teamwork

Defining Qualities: Flexibility and discretion; internal focus and integration

Motto: “We’re all in this together.”

About clan culture: A clan culture is people-focused in the sense that the company feels like one big happy family. This is a highly collaborative work environment where every individual is valued and communication is a top priority. Clan culture is often paired with a horizontal structure, which helps to break down barriers between the C-suite and employees and encourage mentorship opportunities. These companies are action-oriented and embrace change, a testament to their highly flexible nature.

Benefits: Clan cultures boast high rates of employee engagement, and happy employees make for happy customers. Because of its highly adaptable environment, there’s a great possibility for market growth within a clan culture.

TYPE 2 – Adhocracy Culture

Primary Focus: Risk-taking and innovation

Defining Qualities: Flexibility and discretion; external focus and differentiation

Motto: “Risk it to get the biscuit.”

About adhocracy culture: Adhocracy cultures are rooted in innovation. These are the companies that are on the cutting-edge of their industry — they’re looking to develop the next big thing before anyone else has even started asking the right questions. To do so, they need to take risks. Adhocracy cultures value individuality in the sense that employees are encouraged to think creatively and bring their ideas to the table. Because this type of organizational culture falls within the external focus and differentiation category, new ideas need to be tied to market growth and company success.

Benefits: An adhocracy culture contributes to high-profit margins and notoriety. Employees stay motivated with the goal of breaking the mould. Plus, with a focus on creativity and new ideas, professional development opportunities are easy to justify.

TYPE 3 – MARKET CULTURE

Primary Focus: Competition and growth

Defining Qualities: Stability and control; external focus and differentiation

Motto: “We’re in it to win it.”

About market culture: Market culture prioritizes profitability. Everything is evaluated with the bottom line in mind; each position has an objective that aligns with the company’s larger goal, and there are often several degrees of separation between employees and leadership roles. These are results-oriented organizations that focus on external success rather than internal satisfaction. A market culture stresses the importance of meeting quotas, reaching targets and getting results.

Benefits: Companies that boast market cultures are profitable and successful. Because the entire organization is externally focused, there’s a key objective employee can get behind and work toward.

TYPE 4 – HIERARCHY CULTURE

Primary Focus: Structure and stability

Defining Qualities: Stability and control; internal focus and integration

Motto: “Get it done right.”

About hierarchy culture: Companies with hierarchy cultures adhere to the traditional corporate structure. These are companies focused on internal organization by way of a clear chain of command and multiple management tiers that separate employees and leadership. In addition to a rigid structure, there’s often a dress code for employees to follow. Hierarchy cultures have a set way of doing things, which makes them stable and risk-averse.

Benefits: With internal organization as a priority, hierarchy cultures have clear direction. There are well-defined processes that cater to the company’s main objectives.