Types Of Company Culture

Post A Job For Free, Promote It For A Fee

Post a Job

Key Takeaways

• Company culture is how you do what you do in the workplace. It’s the sum of your formal and informal systems and behaviors, and values, all of which create an experience for your employees and customers.

• Company culture is an important factor for 46% of job seekers. 94% of entrepreneurs and 88% of job seekers report that a healthy culture at work is vital for success.

• Employees who are part of a positive culture are more likely to be more productive and loyal to your business.

What Is Company Culture?

The term company culture is used by many, but it can mean very different things depending on who you talk to. Great Place to Work defines company culture as “how you do what you do in the workplace. It’s the sum of your formal and informal systems and behaviors and values, all of which create an experience for your employees and customers.”

Company culture can make or break your business. Having a positive company culture will impact your overall bottom line and the quality of your talent. Companies that have strong cultures experience benefits like increased productivity, better employee engagement, and higher profitability than competitors.

According to Team Stage, company culture is an important factor for 46% of job seekers. 94% of entrepreneurs and 88% of job seekers report that a healthy culture at work is vital for success. Creating and fostering a company with positive company culture is a sure way to remain successful and edge out your competition.

Types of Company Culture

Company culture has the potential to set your business apart from competitors. It brings uniqueness to your workplace and brand and gives your business a personality of sorts. Employees who are part of a positive culture are more likely to be more productive and loyal to your business.

Despite the uniqueness of company culture, there are a few different buckets in which your company culture can sit. Here are some of the different types of company cultures to consider.

• Clan Culture. Also referred to as collaborative culture, this type of culture may be described as a family. Most common in family-owned or small businesses, this culture works to eliminate hierarchies and facilitate a supportive work environment where employees are as involved as the leadership team.

  With clan culture, employees are more likely to provide open and honest feedback to their management teams. It can also work to facilitate stronger co-worker relationships. However, because this culture can make the workplace a bit more relaxed, employees may tend to be too relaxed for business, which can stunt growth.

• Purpose Culture. Purpose culture means all employees are working towards a goal for the greater good, whether it be sustainability, the environment, or human rights. Many non-profit organizations fit into this category. These employees work towards a goal driven by a higher cause rather than focusing on individual accomplishments.

  These companies have a goal to give back, meaning they often give part of their profits to charities they deem important. This is a great culture to maintain retention rates, but profits in these companies tend to be lower than others, meaning employee pay may be lower.

• Hierarchy Culture. This is the most traditional type of culture, especially in large organizations. Management is made up of various levels, and there is a distinction between employees and leaders. These cultures tend to be risk-averse and focus on preventing mistakes, adhering to rules, and managing failure.

  Hierarchies work to make companies more organized, giving everyone a clear role and purpose. This makes the business more efficient. However, it can leave little room for flexibility and can feel too old-fashioned or rigid for some employees.

• Adhocracy Culture. Also called creative culture, this culture exists when everyone is expected to innovate and experiment with new ideas. This culture is especially useful in industries where risks can bring huge payoffs, like tech or other disruptive industries. This type of culture heavily emphasizes company growth.

  This is a high-energy and exciting type of culture. With constant innovation, it can help a business stand out from competitors and be the first to market. Companies like Google, Facebook, and Apple thrive in these cultures. However, it can also make it difficult for employees to focus on one thing at a time or be too fast-paced for some.

• Market Culture. Also called compete culture, this culture works to help a business dominate the market. It’s one of the most intentional types of company culture and typically requires every employee to be involved by committing to getting results. It’s a highly competitive type of environment as well.

  This type of culture focuses less on the employee experience and more on performance and results. This means companies can release new products quickly to stand out from the competition, but it’s also one of the cultures most prone to burnout. Tesla, Amazon, and General Electric have this type of culture.

• Customer-focused Culture. This culture considers personal accomplishments less important than satisfying customers. In this type of culture, the customer is always right. Employees must always think about how customers will interact with their products or service, and things like social media or reviews are heavily monitored.

  Company-focused culture ensures customers are satisfied, creating customer loyalty which helps the business. It helps employees make decisions on how best to keep customers happy, helping them to be prideful in their work. However, it can also mean that employees may feel neglected or less important.

• Role-based Culture. In this type of culture, employees lead projects based on their expertise rather than their individual position. Companies with this type of culture also tend to ignore whether someone is a manager or subordinate and focus more on who can do the job best based on their skill set.

  This can be a great culture for a team of individuals with finely tuned skill sets. Employees will feel utilized and appreciated for their expertise and are often paid a higher wage. However, it can be difficult to find jobs with this type of culture because it typically requires many years of experience and demonstrable skills.

Company Culture FAQ

1. What is company culture?

   In short, company culture can be defined as how you do what you do in the workplace. It’s the combination of your formal and informal systems and behaviors, and values. All of these things create a specific experience for your employees and customers, which is, in essence, the company culture.

   Company culture can and should be fostered and maintained. If you work in a company where leadership is in charge of these decisions, it’s important for them to figure out the best way to accomplish this. If you work in a more collaborative culture, it’s up to the team as a whole.

2. What are some company culture examples?

   Company culture covers a wide variety of things. You can consider something like dress code, office layout, rewards or perks, and the company’s social calendar things that contribute to company culture. It can also refer to how the management or leadership team is structured, as this impacts the overall experience employees have in the company.

3. What is good company culture?

   A positive company culture is often reflected in the company’s employees. If the majority of employees are happy and feel positive and supported at work, chances are the company has a great culture. Employees may know their values by heart and feel like they are working towards something purposeful.

   Other signs of a good company culture include accessible and visible leaders, comfortable workspaces, flexible work hours, absence of office politics, clear missions, transparency, and plenty of professional development opportunities.

References

1. Great Place to Work – Company Culture – Meaning, Benefits and Strategies

2. Team Stage – Company Culture Statistics: Leadership and Engagement in 2022

Author

Caitlin Mazur

Caitlin Mazur is a freelance writer at Zippia where she has written 140+ articles that have reached over 1 mil viewers as of June 2023. Caitlin is passionate about helping Zippia’s readers land the jobs of their dreams by offering content that discusses job-seeking advice based on experience and extensive research.