Organizational culture is an expectation, an experience, a philosophy, and values that drive the organization. Aristotle said, “We are what we do a couple of times.” If we have a habit, the company has a culture. That is the easiest way of understanding this.
Moreover, corporate culture is vital for 46% of job seekers. It’s a tool for bringing people in as human capital. However, when we know how vital it is, managers cannot explain it. A 2018 Deloitte study found that less than one-third (28%) of executives report knowledge of their business culture.
Not only does it cover the personality and identity of a business, but it can also significantly impact how our organization functions and performs. So let’s see what organizational culture looks like.
Types of Organizational Culture and Company’s Success Story
As businesses scale up, they create different types of cultures. Now we are about to look at the types of organizational culture and how it makes them great. Hopefully, we can learn how to improve organizational culture and help us figure out the perfect model for our company.
1. Clan culture & Patagonia
A clan culture is where the organization has a strong feeling of loyalty and unity. Employees in this culture often have long-term connections to corporate values and are highly committed to their success.
An example of a company that can have a clan culture is Patagonia, an outdoor apparel and equipment company. Patagonia has a strong commitment to environmental sustainability, reflected in its culture and people. They have a strong sense of community and shared values, and employees are very dedicated to the company’s mission.
Patagonia also encourages employees to take leave for outdoor activities and has flexible work hours. There is an employee handbook entitled “Let My People Go Surfing.” All these elements contribute to the sense of loyalty and unity that characterizes the clan culture.
2. Adhocracy culture & Google
An ad hoc culture is a culture with a high level of autonomy and flexibility. This model encourages people to innovate and take risks. Google is an example of an enterprise with an ad hoc culture. Its culture is centered on innovation, creativity, and collaboration. Google’s culture is based on fundamental values, including user-centric, innovative, and risk-taking.
Since before it went public in 2004, Google’s founders had the initiative known as the “20% Project.” To inspire innovation, Google lets people spend 20% of their time working on projects that excite them. It has resulted in many more successful Google products and features, such as Google News and Gmail.
3. Market culture & Goldman Sachs
It is a culture where the organization strongly focuses on achieving objectives and success. This culture is often linked to a competitive focus and a dynamic, results-oriented environment.
One example of a company that can have a market culture is Goldman Sachs, a multinational investment bank and financial services company. The company puts a strong focus on performance and encourages people to work hard, be ambitious, perform well, be aggressive, reach goals and win at all costs in a fast-paced work environment.
Anyway, Goldman Sachs employees were fighting over $950,000 salaries last year. These factors contribute to the sense of competition and the results-oriented environment that characterizes market culture.
4. Hierarchy culture & Amazon
A hierarchical culture is one in which there is a seamless chain of command and a strong focus on rules and procedures. It is often linked to a highly structured and formal environment.
The hierarchy may work well for large e-commerce companies such as Amazon. It allows the business to be organized into smaller teams under separate management for a more accurate service that assures attention to detail.
Amazon has a hierarchical structure with a rigid chain of command and centralized decision-making processes at its head. They are known for their intensive and strict performance review process called “Rank and Yank.”
That system strengthens a culture of competition among employees and emphasizes achieving goals and targets. It also helps develop a standard for assessing workers and rewarding top performers.
5. Professional culture & McKinsey
It is a culture where the organization is focused on delivering a high level of expertise and quality. This culture is often related to professional service firms such as accounting, law, and consulting. What is one firm that has a strong work culture? For many business leaders, the answer comes to McKinsey & Company.
McKinsey & Company is recognized for their professionalism, expertise, and quality of its work. They place a priority on delivering high-quality services to their clients. As a result, this 96-year-old consulting firm has become the gold standard for business leaders, especially in Forbes’ inaugural ranking of the best management consulting firms in the world.
6. Innovation culture & Apple
It is a culture that fosters and rewards innovation, experimentation, and creativity. Apple is an example of a business that can develop a culture of innovation. With this model, Apple is focused on fostering creativity and continuous improvement. It also encourages people to move beyond the ordinary and take risks.
Also, Apple is known for its “intense secrecy.” Employees must maintain a high level of confidentiality to safeguard the company’s ideas and projects. Apple uses them to keep its products and practices away from competitors. With this in mind, Apple is renowned for its innovative and pioneering approach.
We can see how great those companies are, but it is crucial to remember that building a solid organizational culture takes time, effort, and commitment. As it takes time to get there, let us continuously try to maintain and improve it over time.
