Beginners Guide to Organizational Culture

When it comes to creating an environment where employees feel comfortable and customers feel well served, everything starts with organizational culture. But what is organizational culture? Some argue that there is no common consensus on organizational culture, but that it can be shaped by incentives – money, promotions, recognition, etc. – that influence employees to do what is right for the company. The Society of Human Resources (SHRM) describes organizational culture as “the way things are done within an organization” 

Creating an environment where an organization can flourish requires creating a culture based on a strongly held and widely shared set of beliefs. According to SHRM when an organization has a strong culture, three things happen: 

  • “Employees know how top management wants them to respond to any situation”

  • “Employees believe that the expected response is the proper one”

  • “Employees know that they will be rewarded for demonstrating the organization's values.”

Organizational culture is a major key to ensuring a company's success. However, it is important to remember there is no right or wrong organizational culture. Based on our research, there is no "best" or "worst" company culture. Company culture is chosen by how a specific company would like to run itself; there is no one-size fits all type of culture. Next, we will explain 4 different types of models that you can use as a guide when shifting or creating organizational culture. 

According to LinkedIn, Clan, Adhocracy, Market, and Hierarchy are the four most common organizational culture types. Clan-oriented cultures are family-like and focused on cultivating a nurturing atmosphere, with a focus on working together as a team. Adhocracy cultures are more entrepreneurial and innovative and praise getting things done first. Market cultures are competitive and employees are encouraged to do whatever it takes to get the job done. Lastly, hierarchical cultures are more organized and focused on efficiency and doing things the right way.

You can select one or two of these four typical organizational cultures that best suit your business and your staff and start implementing them.


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