Organisational culture, often synonymous with company culture, is the amalgamation of shared values, attitudes, and practices that uniquely characterise an organisation. It acts as the personality of your company, playing a pivotal role in determining employee satisfaction and influencing the overall success of the enterprise.
The Significance of Strong Organisational Culture
A robust organisational culture holds immense importance as it not only attracts suitable candidates but also serves to keep them engaged as valuable employees. A 2019 Glassdoor study highlighted that a staggering 77% of adults consider a company’s culture before applying for a position, with more than half of them ranking organisational culture as more crucial than compensation. Moreover, a 2021 SHRM study underlined that 94% of people managers firmly believe that a positive workplace culture is instrumental in retaining employees.
Building a winning organisational culture is no small feat; it demands a considerable investment of time and effort. The culture must accurately reflect the organisation’s values and seamlessly align with its overarching mission. While organisational cultures naturally evolve over time, particularly with team expansion, proactive steps can be taken to tailor the culture to better align with the company’s values and mission.
Understanding the Four Types of Organisational Culture
Research conducted by Robert E. Quinn and Kim S. Cameron of the University of Michigan identified four primary types of organisational culture. Visualised through the Competing Values Framework, these cultures stem from key polarities: internal vs. external focus and flexibility vs. stability.
1. Clan Culture: Fostering Collaboration
Primary Focus: Mentorship and teamwork.
Motto: “We’re all in this together.”
Clan culture is characterised by a family-like atmosphere, promoting collaboration and communication. Often found in startups and smaller companies, this highly adaptable environment encourages mentorship opportunities. However, sustaining a clan culture becomes challenging as the company grows, especially due to its horizontal leadership structure.
2. Adhocracy Culture: Nurturing Innovation
Primary Focus: Risk-taking and innovation.
Motto: “Risk it to get the biscuit.”
Adhocracy cultures thrive on innovation and adaptability. These organisations, exemplified by industry giants like Google and Apple, encourage creativity and risk-taking. As part of the external focus and differentiation category, adhocracy cultures are pioneers, always seeking the next big idea.
3. Market Culture: Emphasising Competition
Primary Focus: Competition and growth.
Motto: “We’re in it to win it.”
Market cultures prioritise profitability and focus on external success rather than internal satisfaction. Commonly found in larger, industry-leading companies, these cultures are results-oriented and stress the importance of meeting quotas and achieving tangible results.
4. Hierarchy Culture: Ensuring Stability
Primary Focus: Structure and stability.
Motto: “Get it done right.”
Hierarchy cultures adhere to a traditional corporate structure, emphasising internal organisation and a clear chain of command. Prevalent in both old-school and customer service-oriented organisations, these cultures are stable but can be slow to adapt to changes in the marketplace.
Diverse Organisational Cultures: Beyond the Main Four
Beyond the four main categories of organisational culture, several other noteworthy types exist, each influencing the workplace environment in unique ways:
- Purpose Culture: Centred around a company’s mission and core values.
- Coaching Culture: Where senior leadership takes responsibility for mentoring employees and ensuring their career progression.
- Accountability Culture: Implies that everyone within the organisation, including top leadership, is responsible and accountable for their actions and performance.
- Learning Culture: Places a special emphasis on learning and development opportunities, often involving company-wide workshops and encouraging employees to acquire skills beyond immediate job requirements.
Identifying and Nurturing Your Organisational Culture
Understanding your company’s culture is pivotal in attracting the right talent. Cameron and Quinn’s assessment tool proves invaluable in identifying your organisational culture, enabling you to align it more effectively with your company’s overarching goals and values. Continuous evaluation is essential, ensuring a proactive approach to achieving organizational culture objectives.
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In conclusion, organisational culture is a dynamic force that significantly shapes your company’s identity. By comprehending and actively shaping it, you can create an environment that not only attracts and retains top talent but also fosters long-term success.
