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What are 4 types of organizational culture?


Organizational culture consists of the collective values, attitudes and procedures that describe the distinctive nature of an organization. It’s the identity of a company and plays an important role in the satisfaction of the staff of a company. While any specified organizational culture will develop gradually — particularly as the team become larger and new employees are hired— you can take measures to adapt your culture to be suitable for the organization’s values and mission. But first, it is necessary for you to perceive the type of organizational culture that dominates your company at the present time.

What is the importance of organizational culture?

What is the importance of organizational culture?

A robust and proper company culture will draw in the right applicants for the job and keep them involved and interested as employees. Making a strong organizational culture is time-taking and challenging — the dominant culture must properly mirror the values and agree with your general mission. It’s a very hard duty, but don’t get disappointed: your efforts will yield good results in the long term.

Different types of organizational culture

Clan culture

Type 1: Clan culture

A clan culture is people-oriented since the company is very much like a family. This is a very cooperative work atmosphere where everyone is important and respected and communication is prioritized. Clan culture is usually associated with a horizontal structure, which contributes to demolishing boundaries between high-ranking executive managers and employees, and it supports mentorship chances. These companies encourage practical actions and welcome change, which shows their high flexibility.

Clan culture is one of the types of organizational culture that is proud of its high rates of employee commitment and collaboration, and satisfied employees attempt to please customers. Due to its highly flexible environment, it is very possible to achieve market growth within a clan culture. Clan cultures can be typically found in startups and smaller companies. Nascent companies that are just beginning lay a high emphasis on cooperation and communication, managers expect employees to provide them with feedback and ideas and organizations give priority to team-building.

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To create a clan culture in an organization, you must first consult with your employees for help. Communication is essential to cultivate a successful clan culture, so inform your team that you’re ready for communication. Figure out what they prioritize, what they want to change, and what ideas they have developed for the company. Then take their ideas into consideration and put them into effect.

Adhocracy culture

Type 2:  Adhocracy culture

Adhocracy cultures are based on innovation and flexibility. These are the organizations that are on the most advanced stage of their industry — they’re trying to create the next big thing before anyone else has even begun posing the proper questions. To achieve this goal, they are required to take risks. Adhocracy cultures appreciate individuality since they motivate employees to think innovatively and provide helpful suggestions. Because this type of organizational culture belongs to the external concentration and differentiation class, new ideas must be bound to market development and company success.

An adhocracy culture helps to high-profit margins and success. Employees remain incentivized with the purpose of doing completely different things. In addition, with a concentration on innovation and new ideas, professional growth chances are easily justifiable. Google and Apple are two companies that represent the external concentration and creative nature of adhocracy culture. They count on innovative energy and doing completely different things. Adhocracy cultures are ordinary within the constantly changing tech industry where new products are being created and distributed regularly.

Market culture

Type 3: Market culture

Market culture gives priority to lucrativeness. Everything is assessed with profit and earnings in mind; each position has a purpose that matches the company’s larger objective, and there are usually some degrees of separation between staff and managers. These are companies that focus on results and value outside success over internal satisfaction. A market culture puts emphasis on the significance of fulfilling tasks, achieving goals and reaching results.

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Companies that make use of market cultures are lucrative and prosperous. Since the whole organization is externally concentrated, there’s a leading goal that employees can try to achieve it. The purpose of a market culture organization is to rank first in its industry. Due to that, these are usually bigger companies that are the most powerful and influential ones. They’re trying to overcome and defeat anyone else that may be competitors. Since every facet of market culture is connected to the company’s profit, begin by assessing each position within your company. Evaluate the profitability of every position and attribute logical standards for production. Give rewards to the best performers to stimulate similar work.

What are 4 types of organizational culture?

Type 4: Hierarchy culture

Companies with hierarchy cultures stick to and obey the traditional company structure. These are organizations concentrated on the internal organization through a transparent chain of command and numerous management ranks that make employees distinct from leadership. Besides a firm structure, there’s usually a set of rules about clothing and appearance for employees to obey. Hierarchy cultures emphasize a fixed way of doing things and they do not welcome change, which makes them firm and unwilling to take risks.

Since they put emphasis on the internal organization as hierarchy cultures have a clear structure. There are clearly described processes that meet the company’s leading goals. Hierarchy cultures exist in different sections and industries, from traditional companies to those modern industries like fast food restaurants. These are organizations that are completely concentrated on how daily operations are conducted and aren’t willing to change things very soon and easily. In order to set up a hierarchy culture you must carefully plan and execute the processes first. If the chain of command suffers from some gaps, bridge them. Talk to every team and department to make sure they have plain long- and short-term objectives.

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