What is corporate culture?
Corporate culture refers to the attitudes, and practises that determine how a company's employees and management interact and handle outside commercial dealings. Corporate culture is frequently suggested rather than explicitly defined, and it emerges organically over time as a result of the cumulative characteristics of the individuals the firm hires.
The dress code, business hours, office arrangement, employee perks, turnover, hiring decisions, customer treatment, client happiness, and all other aspects of operations will reflect a company's culture.
What are the examples of a corporate culture?
There are numerous examples of businesses that have well defined corporate cultures. For example, Alphabet Inc. (GOOGL) is recognised for its employee-centric culture and emphasis on working in a creative and flexible atmosphere, whereas Amazon (AMZN) is known for its unwavering commitment to customer service and operational efficiency. National cultures frequently have a part in determining the type of business culture that exists in society. Japanese corporations, for example, are noted for having substantially distinct corporate cultures than American or European corporations.
What is a good corporate culture?
In 2015, the Harvard Business Review highlighted six key elements of effective business cultures. The first is "vision": a company's vision, whether it's a basic mission statement or a corporate manifesto, is a strong instrument. Google's current and infamous motto, "Don't Be Evil," for example, is a strong business goal. Second, while "values" is a wide notion, it encapsulates the mentalities and viewpoints required to realise a company's vision.
Similarly, "practises" are the concrete procedures by which a corporation implements its ideals, driven by corporate culture ethics. Netflix, for example, values knowledge-based, high-achieving individuals and, as a result, pays its employees at the top of their market compensation range rather than through a "earn your way up" mindset. Then there's "people," with corporations employing and recruiting in a variety of ways.
Must see: 5 Ways Netflix Reinvented HR
What are the four types of corporate culture?
1. Culture of clan
Clan culture is more prevalent in traditional organisations than in digital ones. Because these businesses are frequently family-owned, there is a strong emphasis on fostering employees through interpersonal relationships and mentoring programmes. Of course, all of this is done to give the impression that you are part of a truly extended family.
2. Culture of Hierarchy
Traditional organisations have hierarchical cultures as well. Businesses are highly structured, with authority and decision-making concentrated at the top. As a result, decisions are made solely by the C-suite. As a result, other employees may feel under-appreciated and helpless. As a result, while this style of organisational culture is typically incredibly efficient, it isn't conducive to creativity or innovation.
3. Culture of Market
Market culture is geared toward scaling digitally savvy enterprises. As a result, this culture is particularly results-oriented, rewarding winners and valuing internal competition. As a result, this is a culture where everyone is expected to be on their "A-game." Those that continuously excel are rewarded financially or given opportunities for advancement.
4. Culture of Adhocracy
An adhocracy focused on innovation is associated with digital enterprises and encourages risk-taking. Everyone, regardless of their position, is encouraged to engage in this less structured culture because you never know where the next brilliant idea will come from!
What is the importance of corporate culture?
There are clear benefits of corporate culture that define a strong, unified company culture underlying your business’s operations:
1. Organizational identity
A company's culture influences its identity and ideals. If a company's culture values goal-setting and achievement, for example, employees will be more likely to set and achieve personal goals. It's a good approach to set and maintain your employees' direction, and it's difficult to keep your company's values consistent without it.
2. Employee retention
A positive corporate culture recruits and, more importantly, keeps good employees. People are more inclined to stay with an organisation if they feel like they are a part of it. That implies decreased turnover, fewer new hires to manage, and better team cohesion.
3. Brand image and reputation
A company's culture also contributes to your brand's identity. Customers will perceive you as a fun-loving, generous brand if you treat your staff well and create a fun-loving corporate environment. That might be a big boom for sales and consumer loyalty, depending on your target demographics.