Types of Organisational Culture
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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Common Types of Organisational Culture
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 |
Alternative Organisational Culture Models
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 |
How to Identify Your Organisation’s Culture?
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:
- Employee Feedback and Behavior: This could be your hidden Eldorado. You can arrange anonymous surveys to assess and understand the POVs (point of view) of your employees on values, employee satisfaction, communication, diversity and inclusion. Conduct one-to-one interviews for more in-depth dives into individual experiences. Do not forget to follow workplace interactions. Try to gauge if it is coordinated or competitive. Analysing exit interviews can also be a good idea. Most importantly, performance reviews can reveal how well employees sync with desired behaviours.
- Leadership Style and Decisions: Leaders set the style, and the rest follow it. Study their interactions – are they supportive or over-dominating? Are decisions being made as a team or top-down? Is communication open and honest? How do they handle disagreement? Understanding these patterns can help you uncover the power dynamics and trust levels within the organisation.
- Communication and Collaboration: How do people talk to each other? Are communications formal or casual? How do teams collaborate? Is feedback regular and two-way? Do employees socialise? These factors reflect the organisation's level of formality, accessibility, and community.
Choosing and Shaping the Right Organisational Culture
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:
- Aligning Culture with Business Goals and Values: Ask yourself - What principles make the DNA of your organisation, for example - innovation, integrity, etc.? How does your work culture back your mission and vision? Is your culture in line with your competitive strategy? These values steer employee behaviour and decision-making. So, make sure the culture supports what you are trying to achieve.
- Steps to Shift from One Culture Type to Another: Understand your existing culture in the first place - its strengths and weaknesses. You can use surveys, interviews, and personal observations to assess it. Then, find out the answer of - what kind of culture do you need to achieve your goals? What behaviours and values should it represent? Make it a point to identify the differences between your current and preferred culture. It will help you highlight areas for change. Good things take time. The same applies to cultural change. Be patient.
- Maintaining Balance: Make sure your business model strikes the right balance between structure, innovation, and employee well-being. Too much structure is likely to stifle innovation and excessive innovation can make things cluttered. All these would ultimately impact the well-being of your employees.
- Role of HR in Shaping Organisational Culture: HR acts as a flag-bearer of the culture. They make sure that it aligns with the organisation's goals. They are responsible for hiring candidates who fit the desired culture, helping new joinees understand and blend into the culture, and developing programs that fortify the expected values and behaviours.
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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