Organizations are like homes—they have their own ways of doing things, especially when it comes to their employees. A corporate entity’s culture is the real reflection of how they do and run their business. This year, transform Global Company Culture Day into something goal-driven and more meaningful to carry on in the following years.
In this article, we’ll explore positive corporate culture concepts and address important elements that point toward establishing proper corporate culture.
Separating Corporate Culture from Values
One of the key things that drive successful companies and organizations in the world are healthy corporate cultures and strict sets of core values. And while many people use it interchangeably, these two are different. In fact, they’re supplemental to one another.
In a nutshell, a company’s core values are the guiding principles for their activities, choices, and, overall, corporate behaviors. On the other end of the spectrum, company culture is the milieu that it cultivates for its employees through its policies, practices, and recruiting procedures.
Both are equally important as they dictate how people within an organization thrive in the environment and how people outside perceive it.
The Four Main Corporate Cultures in Today’s World
Through careful research and the union of work, experts were successful in identifying four different corporate cultures that are distinct from one another.
Clan Culture (Caring)
This type of corporate culture is where employers treat employees—and employees treating one another as family. Furthermore, clan culture thrives on teamwork and collaboration; relationship-building is what’s nurtured and improved in this type of culture.
The core of clan culture is to treat everyone like family, where managers are seen as advisors or leaders to employees instead of bosses.
Pros of Clan Culture
- Employees will be engaged at work and will work collaboratively
- Everyone will enjoy working together
- Communication will be topnotch
Cons of Clan Culture
- Complex to maintain when the business grows
- Collaboration can produce fluff or unnecessary collaboration
- Dull and slow decision-making due to collaborations
Adhocracy Culture (Learning)
Adhocracy culture is the type that breeds adaptability and innovation. Adhocracy mimics big-buck businesses where they establish an “entrepreneurial space,” where staff members are encouraged to take big leaps of faith and try ideas out that would be “too risky” for the traditional company.
This culture is heavily dependent on good and calculated risks, instead of the slow and steady.
Pros of Adhocracy Culture
- There’s no limit to what employees can think of and ideate
- Employees feel highly motivated to get creative
- High-risk, high-reward type of set-up
Cons of Adhocracy Culture
- Competition between employees is possible
- Little-to-no stability because of new initiatives regularly
- Can landslide into failure if losses and incorrect decisions are consistent
Market Culture (Results)
Probably the culture that many traditional organizations have been following is the market culture. Also known as the results culture, the end goal of the business is the priority.
This culture is attractive and equally enticing to people who are focused on “winning.” Furthermore, organizations that have this as their culture type look for competitive and high-performing employees.
Pros of Market Culture
- Most staff members hired are enthusiastic and competitive
- Success and profitability are somewhat expected due to the culture
- It gives a sense of encouragement to workers in reaching company goals
Cons of Market Culture
- Employees may find it challenging to work in such a high-pressure environment
- Stress can be a factor for employees and managers, which can foster a toxic environment
- Constant competition between employees may not be healthy at all times
Last but most definitely not least is the hierarchy culture. Though pretty evident, this culture is the one that follows the conventional steps of a corporate structure.
High-level employees, executives, and managers have this thick line of separation between employees to instigate a chain of command whenever one is needed. Ideally, organizations with a hierarchic culture have their focus on reliability and overall stability, and they continue with their usual methods.
Pros of Hierarchy Culture
- The organization keeps its stability due to the conservative nature of the culture
- Processes, goals, and challenges are defined clearly, helping to meet objective better and faster
- Employees get a better sense of security
Cons of Hierarchy Culture
- It can be discouraging for innovation because employees’ suggestions could easily get lashed
- Subject to slow market response changes
- Organizations may prioritize their goals over their people
Why a Positive Corporate Culture Matters
Establishing positive corporate culture doesn’t just help meet company goals, it makes the lives of the people involved easier and lighter, too. Founders, executives, and business leaders are expected to develop goals for the company. When employees come in, these elements mix, creating the perfect culture.
In fact, 72 percent of companies say that a positive and nurturing corporate culture helped them find success with change initiatives.¹ Leaders are starting to pick up on the importance of company culture, and you should, too.
A perfect example of a positive corporate culture that directly reflects business is Disney. The company prioritizes caring or clan culture and order, encouraging an environment of teamwork, work ethic, and respect. This enables and reinforces employees to do their best because they’re appreciated, cared for, and supported.
As a result, Disney has grown from just a cartoon studio to one of the top and most prominent streaming service platforms in today’s age and time. The company is also open to hearing employee voices, elevating engagement, and celebrating cultural moments globally.
Advantages of a Positive Corporate Culture
Positive corporate cultures are all about growth and development. Like any other culture, companies that practice this culture strive to develop their organization on a holistic level. It’s also imperative to note that a positive corporate culture has the following advantages:
- Better and higher employee retention with minimal attrition
- Healthier work environment where employees feel motivated
- Higher levels of organization effectiveness and productivity
- Better chances at boosting and increasing employee morale, reducing stress
A Company of Positive Culture Can is the “Change” We Want
Gone are the days of excessive hardness and stringency, that style just doesn’t work any longer, especially in our time when innovation meets success. Embracing a positive corporate culture leads to a brighter, healthier, and livelier work environment.
ALLOW FOCUS PEOPLE TO NURTURE YOUR ORGANIZATION AND HELP YOU BUILD A POSITIVE CORPORATE CULTURE
As organizational dynamics evolve, leaders must evolve, too. For years, Focus People has been working with some of the top names in the tech, accounting and finance, professional, and administrative industries. Our comprehensive staffing expertise is dedicated to nurturing a natural, positive corporate culture that transcends generations of leadership.
Our mission is clear: provide your company with exceptional, dedicated candidates to fill crucial positions. You can count on us to navigate the intricacies of a positive corporate culture. Get in touch with us today and get the exceptional service you want for your organization.
1 “Organisational Culture: It’s Time to Take Action.” PWC. https://www.pwc.com/gx/en/issues/upskilling/global-culture-survey-2021.html. 24 Jul. 2023.