Various Types of Company Culture

If aspiring business enterprises want to drive their business forward, building a strong company culture should be the way to go. A word of caution- getting it wrong can be a very expensive mistake. And many businesses have come to realize this after being faced with serious issues with employee retention, productivity, and engagement (to name a few). So, focusing on the people might be a high priority on the list. 

In the following article, various types of company culture are being discussed with their key characteristics. So read on-

Hierarchy culture

The most traditional type of culture, hierarchy culture revolves around structure, control, and “doing things right”. The working environment will be extremely organized with well-polished policies and procedures. Keeping the business running smoothly is key.

Unlike in a clan culture, there are strict rules, and leaders are likely to be keeping a close eye on what employees are doing. There are several layers of management between leadership and employees, many more than that in other cultures, and leaders are highly respected by their teams.

Adhocracy culture

The word Adhocracy is derived from the Latin word ad hoc, meaning “for this”.

As the name suggests, the following type of company culture revolves around innovation, success, and overall flexibility. This type of culture is often found within modern industries such as aerospace and technology. Businesses with adhocracy cultures are constantly thinking ahead and developing new products as they live by the assumption that all of their products only have a limited shelf-life.

The office environment is super creative, energetic, and fast-paced. Leaders of an adhocracy culture are true entrepreneurs; they consistently encourage risks to be taken and push employees to experiment with new ideas to attract the potential and targeted customer base. Adapting quickly to changing conditions is the norm in an adhocracy culture so that the latest trends are reacted to and concentrated on.

Clan culture

Also known as “family culture’” a clan culture is friendly, upbeat, and is made up of employees who have a lot in common with each other. The task of building and maintaining a strong company culture consistently stands as a top priority along with focusing on employee wellbeing.

Leaders of clan cultures are hugely respected and are often perceived as mentor figures. These leaders inculcate team building, employee involvement, and empowerment among the employees. Business goals and company values are commonly shared by employees across the organization, resulting in one streamlined universal vision and employees who are invested in the company’s mission.

By coming into a business that boldly demonstrates a clan culture, employees enjoy a harmonious and tranquil working environment and are given the trust and freedom they need to thrive in their roles. This type of culture is typically more common among start-ups as it helps to establish a collaborative mindset where all new innovative ideas are welcome.

Market culture 

Last but definitely not least there is the market culture one of the most ruthless, strongly results-driven, and performance-orientated cultures. Employees are encouraged to set difficult goals for themselves and work hard to achieve them and leaders are tough and demanding. Market share and profit at the forefront of the business focus at all times.

Adopting a market culture is rarely accidental, in fact, it is something that is often deliberately integrated within the company in order to ensure that business objectives are a number one priority. It’s all about the company’s bottom line and financial growth with less of a focus on teamwork and community.

Each type of company culture has different strategies and unique qualities. But, universally, culture is about employees and ensures that they have a fun and productive working environment. And even we all know that a good name equals trust for most consumers. When they trust your company or brand, they spend more on you, it is then equal to sales. All in all, a good company culture enhances effectiveness and efficiency for all.

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