4 Types of Organizational Cultures (+ Best Culture Examples) (2023)

Many companies think that corporate culture means offering "fun" things in the office. So feel free to bring a foosball table, bean bags, free sodas, and so on. And while those things are great and bring positivity to employees, culture goes deeper than that. So let's take a look at workplace culture, examples of culture statements, and more.

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What is organizational culture?

Correspondingthe job board Indeed, corporate cultureis:

“The set of standards of conduct and procedures observed in a company. These include policies, procedures, ethics, values, employee conduct and attitudes, goals and codes of conduct. It also makes up the 'personality' of a company and defines the work environment (professional, casual, fast-paced, etc.).”

So is corporate culture important? Absolutely! First, astudy throughForbesshows that 92% of executives believe that improving company culture will increase the value of the company. Second, more than 50% say corporate culture influences productivity, creativity, profitability, shareholder value and growth rates. Still, only 15% believe their organization's culture is where it belongs.

Of course, the culture is also important for the employees. This is also reported by Indeed, for example46% of job seekers don't apply for certain jobs because they don't think it would be a good 'cultural' fit.

Four types of organizational culture

There are four types of organizational cultures that business leaders should become familiar with, which we will now discuss.

Clan cultural

Clan culture mainly exists in more traditional organizations than digital ones. Because these companies are often family-owned, the focus is often on employee advancement through interpersonal relationships or mentoring programs. All of this is done naturally to create the feeling of a real extended family.

hierarchical culture

There are also hierarchical cultures in traditional organizations. Companies have a lot of structure with power and decision making at the top. As a result, only the C-suite is responsible for making decisions. As a result, other employees can feel undervalued and powerless. While this type of organizational culture is often very efficient, it is not ideal for fostering creativity or innovation.

market culture

The market culture is designed for digitally savvy companies looking to scale. So this culture is very result-oriented, values ​​internal competition and rewards winners. As such, this is a culture where all employees are expected to play their "A-Game". Those who are consistently successful experience significant financial rewards or promotion opportunities.

Adhocracy culture

Associated with digital businesses and fostering risk-taking, an adhocracy focused on innovation. In this less structured culture, all employees are encouraged to get involved regardless of their position because you never know where the next big idea will come from!

7 characteristics of organizational culture

ThatBarrett modelof culture consists of seven characteristics. Created by Richard Barrett who was inspired by Abraham Maslowhierarchy of needs,The model looks at the seven areas that make up human motivations.

1. Viability

Profitability is all about financial stability, which means businesses need to be financially stable in order to:

• Survive
• compete
• Expand your customer base
• Pay your bills and employees

2. Relationships

Most companies want their employees to get along. In this way, they support open communication, employee and customer satisfaction, and friendship among team members. Of course, some companies are wrong, which we will discuss later.

3. Performance

This level focuses on performance. For example, pride in performance and quality of products or services. At this level, companies want to profile themselves and employees want to participate.

4. Development

Today, technology is constantly evolving. As a result, the way people do things today could change by tomorrow. At this level, companies continuously adapt, learn and train employees.

5. Alignment

This trait takes building harmonious relationships to the next level. This trait is mostly focused on building an internal community that is passionate about what they do and open to each other.

6. Cooperation

Once a company discovers its true sense of purpose, it can form strategic alliances. In order to form these partnerships, most organizations need to be “in the game”. For example, when Starbucks opened kiosks within Barnes & Noble, both chains benefited. Then again, they may be working together for a bigger cause, like Subaru and the ASPCA who have raised millions to help animals.

7. Post

At this level, companies take steps to ensure a better planet for future generations. For example, reduce your company's carbon footprint, recycle or find a cause. In short, post is aboutcorporate social responsibility.

5 companies with the best corporate cultures

A glass doorto learnfound that great cultures are created when there are company values, caring and competent leaders, and a clearly defined path to advancement.

So, which five companies nail it when it comes to culture?Forbesjust put this out recentlylistbased on the anonymous staff favorable ratings and a high degree ofemployee engagement.

ADP: “There's a great work-life balance and the realization that life happens both inside and outside of work. Diversity is definitely welcomed and valued, and there is a spirit of charity and acceptance.”

Google:“Intangibles are great. People are cool; Opportunities are there, quality of life is generally high.”

Hubspot:"We believe in the company, in the team and that is reflected in everyone's daily actions."

Microsoft: “There is a consistent drive to be transparent and have a diverse work culture. People are encouraged to speak up and solve problems.”

Zoom:„Literally every single person you come into contact with on a daily basis LOVES working at Zoom. It's a culture that you can not only see but also feel.”

These are just a few examples of great organizational cultures you can find online!

Bad corporate culture can create bad press

Many companies get the culture right while others can stumble. Of the many examples of poor organizational culture we looked at, Amazon stood out due to allegations in 2015. The allegations said employees were expected to attend lengthy meetings and tear up others' ideas. They also had to work until midnight and respond to emails.

More recently, aHistory of the New York Postreported on undercover cops andAuthorJames Bloodworth's infiltration of an Amazon warehouse. He compared the warehouse to a prison. Bloodworth said, "People just peed in bottles because they lived in fear of being disciplined for 'idle time' and losing their job just for going to the bathroom."

This type of culture will result in extremely high turnover. Of course, companies should do their best to avoid attrition due to financial impact and bad word of mouth. Somestudiespredict that every time a company replaces an employee, it costs an average of 6 to 9 months' salary. So, for a manager making $60,000 a year, that's $30,000 to $45,000 in recruiting and training costs.

5 examples of culture statements

Now that we've looked at corporate culture examples, you may want to create your own culture statement. So, here are a few to give some inspiration!

beeswax

Our culture and values ​​reflect our bee namesake, albee-it, in a slightly different way.

✓Offen ✓Effektiv ✓Kundenorientiert ✓Neugierig.

carbon black

We are incredibly proud that as we grow, our culture remains steadfast. At the core? Cooperation, camaraderie and collective hard work without selfishness or pretense. Almost every company says they work and play hard - and we do. But it's much more than that. There's a commitment to each other that can be felt. Additionally, we respect the commitments we all have outside of work—and the confidence and flexibility to meet them.

Etsy

As an Etsy employee, you get to do the work you love, be yourself, and make a difference in the lives of millions. Our commitment to diversity, team culture and the spaces we work in reflect our mission to keep commerce human.

Scion Social

Expand your expertise: We're a curious and driven bunch who come to work every day to tackle tough, meaningful problems. Working alongside our diverse team, you will learn to think quickly and expand your personal and professional skills.

Boost your creativity: Our team is made up of talented, thoughtful, and well-rounded individuals who will inspire you to consider new perspectives and challenge you to become a better creator and innovator.

Expand your passions: Working at Sprout is an opportunity to explore the intersection of personal interest and work experience. Everyone on our team is encouraged to pursue their passions inside and outside of our walls.

Ticketmaster

All work and no play? No way! We come together for more than just meetings. In fact, there's a fun get-together scheduled every month... Sometimes you can even catch a live band on the roof of our Hollywood headquarters.

Remember, your culture statement should reflect your unique company. Therefore, it can be short and sweet or long and detailed. It's all up to you! Check out more great culture statements from other companiesBuilt-in.

Corporate culture survey with pictures

A good way to find out what employees think about company culture is to use surveys. A company survey can not only help you gauge your current culture level, but it can also increase employee engagement (which in turn increases employee retention). Studies show that organizations that don't survey or respond to feedback only score27%on the Employee Engagement Index. It is therefore important not only to collect feedback, butPloton feedback.

While company surveys tend to have relatively high response rates (~85% for companies with fewer than 50 employees, ~75% for companies with 500+ employees, and ~70% for companies with 1000+ employees), adding survey images is a sure way to improve them. When you use a poll with pictures, there is a higher level of engagement and a better level of understanding. Here is an example of a culture survey that asks some questions with pictures and be sure to read more about itBenefits of survey images.

Survey with images created by SurveyLegend.

Conclusion

Corporate culture is no longer defined by superficial things. Above all, many people are now more interested in a company's values, caring and competent leaders and a clear path to advancement - which many of our examples of organizational cultures do very well! So would you like to get a sense of your corporate culture or are you considering surveying your company for a new culture statement? Well you are in the right place!

SurveyLegend offers dozens of beautifully designed onesSurvey Templateswhich you can use to poll or interview your employees. They are safe, responsive and always work! Wondering how to get employees to respond? Check out our blog6 Great Survey Incentives!

Do you have some great organizational culture examples you'd like to share? How about your own culture statement? Share them with us in the comments!

Create your survey, form or culture survey now!

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