Culture eats strategy for breakfast. Show
That’s a common phrase originated by management expert Peter Drucker, and made famous by Mark Fields, President at Ford. The truth is, even the best plans and strategies can be derailed by toxic or unhealthy company cultures. In order to help you build an inspiring and thriving culture, the Fellow team has compiled some important definitions, culture types, and expert opinions in this post. Keep scrolling to learn more about the 8 different types of cultures and identify which one is yours:
What is company culture?Company culture can be defined as the set of core values and attitudes that characterize a company or organization. It determines the behaviours that are encouraged (or discouraged) within a group of people, and who is hired, fired, and promoted within the organization. As Netflix’s CEO, Reed Hastings argues in the company’s culture memo:
One common misconception that leaders have about company culture is that culture is tied to company benefits such as free lunches and ping pong tables. As Reed Hastings explains, these things might help retain some employees, but do not determine your company culture.
If you’re curious about Netflix’s nine cultural behaviours, they are judgement, communication, impact, curiosity, innovation, courage, passion, honesty, and selflessness. What makes Netflix’s company culture so unique is that they rely on these core values to make important decisions, have career development conversations, and share constructive feedback. Now that you have a clear understanding of what company culture means (and how companies such as Netflix put it into practice), let’s talk about eight different types of company culture that exist across different industries. Boost company cultureHaving regular 1:1’s will improve workplace culture by creating better relationships and meaningful conversations. Try Fellow now! What are the 8 types of company culture?In a study published in the Harvard Business Review, culture experts Boris Groysberg, Jeremiah Lee, Jesse Price, and J. Yo-Jud Cheng found that eight characteristics emerge when you look at culture from two different dimensions:
Here are the eight types of company culture and real-life examples of each workplace environment shared by Groysberg, Lee, Price, and Cheng in their study: 1 Caring workplacesCaring cultures are collaborative and welcoming. They focus on mutual trust and relationship-building between teammates. These cultures encourage cross-functional collaboration where people with different skill sets support one another.
According to the HBR study, Disney exemplifies the values and characteristics of a caring culture. As Bob Iger, Chairman and former CEO of the Walt Disney Company wrote in his book, The Ride of a Lifetime:
2 Purpose-driven culturesWork environments that emphasize purpose put a lot of emphasis on altruism and contributing to the greater good. In these types of cultures, employees are united by their passion for the company mission, which is usually focused on sustainability and supporting global communities.
According to John Mackey, founder and CEO at Whole Foods, businesses have a much broader positive impact when they are based on a purpose that goes beyond generating profits and creating value for shareholders.
3 Learning culturesCultures that value learning also put a high focus on creativity, innovation, and exploration. These companies encourage experimentation and brainstorming, as well as a deep sense of curiosity in employees.
According to the HBR study, Tesla is an example of a learning (or innovative) culture, as Elon Musk (CEO and co-founder) invites employees to be as imaginative as possible:
4 Playful work environmentsCompanies with a playful culture are characterized by high morale, employee engagement, and fun. In playful work environments, leaders emphasize spontaneity and a sense of humour.
According to Tony Hsieh, CEO at Zappos, one of the company’s core values is “create fun and a little weirdness.”
5 Results-oriented culturesA result driven culture focuses on goals and results. These companies are outcome-oriented and put a high emphasis on winning. Leaders in these cultures tend to focus on employee performance and drive.
According to the HBR study, GlaxoSmithKline (GSK) exemplifies the type of workplace culture that is driven by outcomes and results.
Authority cultures tend to be characterized by strong and confident leadership. In this type of work environment, leaders emphasize confidence, boldness, and decisiveness.
Ren Zhengfei, the CEO of Huawei, highlights this by stating that the company has a “wolf spirit”:
7 Safe and risk-conscious culturesRisk-conscious companies rank safety at the top of their culture profile. These companies place a high value on planning, preparedness, and caution. Leaders in these organizations are characterized by being realistic and planning ahead.
According to the HBR study, Lloyd’s of London is a company where employees are rewarded for being risk-conscious and careful. Inga Beale, a British businesswoman and the former CEO of Lloyd’s of London confirmed this statement by saying:
8 Structured and methodical work environmentsFinally, some types of cultures prioritize order and structure. In these work environments, employees are rewarded for following rules and sticking to the company’s shared norms. Similarly, leaders tend to emphasize traditional procedures and costumes.
Jay Clayton, an American attorney serving as the Chairman of the U.S. Securities and Exchange Commission (SEC), stated that rule-making is a key function of the commission:
Benefits of understanding company cultureLearning about the different types of company culture can be beneficial for both executives and managers in your organization. According to the study mentioned above, understanding where your culture ranks in this framework can help you recognize a need for change in your organization.
Finally, understanding your company culture and values will be essential when hiring and developing new leaders for the future:
SummaryCompany culture is defined as the set of core values, attitudes, and behaviours that characterize a company or organization. According to culture experts Boris Groysberg, Jeremiah Lee, Jesse Price, and J. Yo-Jud Cheng, understanding your company culture and what is valued when hiring, promoting, and firing employees is an essential part of improving organizational performance. If you are a new manager or leader, start by becoming familiar with your organizational values and culture. This will help you determine what types of behaviours are encouraged and rewarded, as well as the kinds of values that you should look out for when hiring new team members.
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What definition best describes organizational culture?Organizational culture is defined as the underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organization.
Which one of the following statements concerning Organisational culture is correct?Answer and Explanation:
The correct answer is C) A dominant culture expresses the core values shared by most of the organization's members.
What does organizational culture refer to quizlet?Organizational Culture. Is the shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees. Observable Artifacts. Aspects of an organization's culture that employees and outsiders can easily see or talk about.
What determines whether an organization has a strong culture or a weak culture?If there is a high level of agreement and commitment among the members of an organization on the importance of these values, their organization has a strong culture. An organization in which members do not agree with the core values or are not committed to the core values has a weak culture.
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