Different Types of Organisational Culture

Explore the types of organisational culture, from clan to market-driven, and learn how each one shapes workplace dynamics, employee morale, and company success.

Understanding the types of organisational culture is essential for any business that aims to foster a positive, productive work environment. Organisational culture defines the shared values, behaviours, and practices that guide how employees interact and work together. Each company is unique, and its culture shapes everything from daily operations to long-term goals. By exploring the different types of organisational culture, businesses can identify which approach best aligns with their goals, values, and people, allowing them to create a culture that motivates and supports employees while achieving results.

What is organisational culture?

Organisational culture refers to the behaviours, procedures, and expectations that connect and steer all employee interactions. It is the workplace rhythm that shapes attitudes, behaviours, and, in the end, the organisation. While your strategy dictates what gets done at your firm, your company culture determines how. To maintain the correct culture, leaders must demonstrate consistent behaviours and beliefs on a daily basis, and employees must follow their example.

Also read: Tips for employee participation in brainstorming session

Why is organisational culture important?

The key to business success is investing in leadership and organisational culture that allow team members to flourish, participate in work, and feel encouraged. You may consistently and purposefully enhance your business engine, customer service, onboarding, hiring, internal procedures, and almost every other aspect of your firm by utilising your company values.

Different types of organisational culture

1. Clan culture

This type of work environment fosters collaboration and a high degree of cooperation and dedication among staff members to accomplishing the company's objectives. Additionally, it results in employees who are happier, more engaged, and more productive. But occasionally, it can also be troublesome when there is unclear leadership.

1. Hierarchy culture

Hierarchy culture has management tiers that are well-defined. Companies with a hierarchical structure have very centralised authority over the policies and procedures of the company. Each level of the hierarchy has rigorous control over the one below it in companies with this culture. This type of corporate culture is very beneficial to success and productivity in some sectors, like banking and insurance.

1. Adhocracy culture

The Adhocracy culture is often the way that companies in tech-based industries opt to go. Similarly to clan culture, adhocracies give employees the space and freedom to experiment, take risks, and come up with new ideas. Adhocracy is one culture that best suits companies that need to constantly innovate cutting-edge, new products or services to stay competitive.

1. Market culture

Employees in this organisational culture are expected to perform at their highest level. They reward top performers and encourage everyone to reach lofty goals. Here, the bottom line is driven by competition and performance indicators. It can increase the strain, but it's perfect for people who do best in a results-driven environment.

1. Purpose-driven culture

Compared to businesses that prioritise their financial line, non-profit organisations are more likely to have this kind of organisational culture. It entails establishing a workplace where workers are dedicated to a shared goal, which is frequently non-financial. This might have to do with environmental sustainability or human rights.

1. Innovative culture

This culture promotes organisational change and ongoing improvement. This culture, which combines risk and strategy, is ideal for businesses where taking risks is a daily occurrence. It's perfect for making rapid adjustments and introducing new items.

How to build a strong organisational culture?

Here are ways to build a strong and positive organisational culture.

• Set an example by acting and speaking in ways that are consistent with the culture.
• Explain how actions and objectives connect to the culture on a regular basis using both written and spoken language. Explain how the culture contributes to the achievement of team and organisational objectives.
• Make the culture come to life with targeted objectives and activities.
• Acknowledge coworkers whose behaviour reflects the culture and take prompt action against those who don't.
• Exchange practical viewpoints so that top leadership can take appropriate action.

Conclusion

Each type of organisational culture offers unique advantages and can contribute to a company's success when it aligns well with its vision and goals. Establishing the right culture can improve collaboration, morale, and overall performance. Companies seeking flexibility and efficiency can benefit from WeWork's workspaces.

With amenities designed to enhance productivity and collaboration, WeWork offers an environment that supports various organisational cultures, fostering growth and adaptability.

Also Read: Tips to increase efficiency in remote work

FAQs

1. What are the main types of organisational culture?

The main types include clan, adhocracy, market, and hierarchy cultures, each having distinct values and goals that impact the workplace environment.

2. How does organisational culture impact employees?

A well-defined culture can foster a sense of belonging, increase engagement, and inspire employees to contribute more effectively.

3. Can a company's organisational culture change over time?

Yes, culture can evolve as companies adapt to new challenges, growth, and changing business objectives.

4. How can a business identify its organisational culture type?

Assessing values, leadership styles, and employee interactions can help determine the dominant culture in a workplace.

5. Why is it important to understand different organisational cultures?

Understanding different cultures allows businesses to choose the approach that best suits their values and goals, leading to better outcomes.