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Organisational culture, as the name suggests, is the culture or the undocumented set of rules and beliefs that everyone follows in your office. A recent SHRM study revealed that a positive organisational culture can keep nearly 64% of Indian employees engaged and committed. It is almost double the global average of 37%. Let's talk about the types of organisational culture, identification methods, and practical steps for shaping a culture in line with your business goals.
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Here are some common types of organisation culture found in businesses:
Culture Type | Description | Characteristics | Organisational culture examples |
Clan Culture | A close-knit company culture that emphasises teamwork, union, and overall employee development. Everyone works like a family. It is more people-oriented. | Top-down collaboration and togetherness. | Google, Zappos |
Adhocracy Culture | Focuses on creation, risk-taking, and growth. | Decentralised leadership and organic decision-making. | Amazon, Netflix |
Market Culture | More results-oriented and competitive, focusing on profitability and achievement. This competitive streak is not only applicable to rival companies but also to employees so that everyone happens to perform better. | High-employee engagement, profitability. | Tesla, General Electric |
Hierarchy Culture | A structure-oriented organisational culture that focuses on long-term stability and efficiency. | Follows a clear line of authority and a shared set of values across the company. | McDonald's, IKEA |
Refer to the below table to understand alternative types of organisational culture with examples -
Culture Type | Description | Examples |
Task Culture | It highlights expertise and achieving specific goals, with a focus on getting the job done. The companies that follow the task culture form teams based on the skill set needed for a given task. | Consulting firms, project-based companies |
Person Culture | It prioritises people and their development and well-being. Collaboration and shared decision-making are the key elements. | Law firms, small partnerships |
Role Culture | It stresses clear roles, responsibilities, and rankings. In such cultures, people value stability and predictability and follow formal structures and procedures. | Traditional government agencies, large manufacturing companies |
Power Culture | Only a few people in the company hold all the power. Moreover, being loyal to the leader gets rewarded. | Family-owned businesses, startups with a dominant founder |
Order Culture | It values proper structure, rules, and procedures. Similar to hierarchy culture, it focuses on maintaining order and stability. | Military organisations, police forces |
Result Culture | It is a result-driven culture that concentrates on achieving specific targets. It values performance. | Sales-driven organisations, investment banks |
Purpose Culture | It is driven by a strong mission and values. Workers are connected by a sense of purpose and go the extra mile to fulfill that. | Non-profit organisations, social enterprises, companies with a strong social mission |
Caring Culture | It emphasises collaboration, support, and employee well-being. Similar to clan culture, it intends to create a positive work environment to thrive. | Healthcare organisations |
Understanding your company's work culture is like decoding the personality of a group. Here we will talk about three major areas that offer valuable insights into understanding the type of organisational culture your business follows:
When it comes to choosing and shaping the right types of organisational culture, the cookie-cutter approach won't work. Here is a breakdown of the key aspects that need to be taken care of:
Conclusion
Your work culture is the personality of your business. It significantly impacts employee engagement and productivity. Different types of organisational culture cater to varying business needs.
Shaping a desired culture requires aligning it with business goals, understanding and bridging the gap between current and desired states, and maintaining a balance between structure and innovation.
Fostering a culture aligned with the business vision is paramount for success. Make it a thumb rule to continuously assess and evolve your culture to remain competitive and attract top talent.
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