As businesses strive to succeed in today’s fast-paced and competitive market, they need to establish a corporate culture that fosters employee engagement, satisfaction, and productivity, if they want to succeed and stay in business. 

Yes, culture is that important.

A company’s culture plays a critical role in shaping the behavior, attitude, and values of its workforce. In this brief overview, we will explore the different types of corporate culture and how they impact the employee experience.

Defining Corporate Culture

Corporate culture refers to the shared values, beliefs, behaviors, and practices that characterize an organization. It is the collective personality of a company that influences its decision-making processes, communication styles, and overall performance. A company’s culture can be shaped by its mission, vision, leadership style, policies, and the way it treats its employees and customers.

Types of Corporate Culture

Clan Culture

A clan culture is a family-like environment where employees share a sense of camaraderie and loyalty. In this culture, the focus is on collaboration, teamwork, and building relationships. Companies with clan cultures value employee satisfaction, creativity, and innovation. They often have flexible work arrangements, open communication channels, and a flat organizational structure.

Adhocracy Culture

An adhocracy culture is a dynamic and innovative environment that encourages experimentation, risk-taking, and creativity. In this culture, the focus is on agility, adaptability, and finding new solutions to old problems. Companies with adhocracy cultures have a high degree of autonomy and often use cross-functional teams to drive innovation.

Market Culture

A market culture is a results-oriented environment where the focus is on achieving goals, beating competitors, and maximizing profits. Companies with market cultures are highly competitive, data-driven, and customer-centric. They value individual achievement and have a high-performance culture that rewards top performers.

Hierarchy Culture

A hierarchy culture is a structured and controlled environment where the focus is on stability, efficiency, and predictability. In this culture, there are clear lines of authority, strict rules and procedures, and a top-down management style. Companies with hierarchy cultures have a clear chain of command and value stability and predictability over innovation and risk-taking.