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4 Types Of Company Culture And How They Are Incorporated

By: Carrie McFarland on November 17, 2020

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What is corporate culture? Leaders of a company have a belief, value, or an idea of how the company should operate to be the most productive and successful.These corporate culture beliefs, values, and ideas are then transmitted to the employees who are expected to work within those. According to Simplicable, a modern encyclopedia, there can be as many as 40 corporate cultures, but just 4 will be addressed here.

Depending on how big or small the company is, the organization can have one or multiple corporate cultures combined into a bigger shared belief or value on how the company is operated. The four discussed below come from the widely used Organizational Culture Assessment Instrument. Including: 

1. Clan Culture

The Clan culture has a family-based atmosphere within the company. They all have shared goals and a collaborative work environment. The environment is usually created to make the employees comfortable, and empower collective wisdom of the group, not just a few individuals.

2. Adhocracy Culture

The Adhocracy group is made up of the types of company cultures in which innovative products and services, like inventing a new product or doing something in a way no one else does, is what defines success. This type of culture usually has a lot of entrepreneurial type of employees, and those who are willing to take risks. 

3. Market Culture

The Market cultures focus on external goals like customer service, profitability, or sales that drive success for their company. The term 'Work Hard, Play Hard' can be attributed to this group. They are all about working fast to solve problems, and delivering results. 

4. Hierarchy Culture

The Hierarchy group is just as it sounds, managed from the top on down. This type of culture does not like surprises, and is all about efficiency. When changes are implemented, these are done in incremental steps, not all at once. 

CONCLUSION

Culture is a vital aspect to how employees interact and engage with the company they work for. Companies with the strongest cultures will stay true to themselves. Different culture types will work for different companies, and what's important is finding the one that works best for your company. No one culture is better than others. By understanding your own company culture, you can define how strategies are implemented moving forward, and how problems can be solved. 

To learn more about how companies can help communicate and implement company culture – especially to the frontline workforce – download our guide and get started today.

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