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The culture of a company makes it or breaks it. It is a theory that has been tested and proved by many executives throughout time.

Corporate cultures are different because every business owner has their own vision for their company and their own ways of getting there.

When we say corporate culture we mean the company’s overall environment, its vision, and long-term objectives.

When a business has a positive culture, turnover rates drop and productivity levels spike. How management approaches employees and daily operations actually makes all the difference when it comes to the business’s success.

In this blog, we will be breaking down the 4 most popular corporate cultures.

The Clan Culture

A clan culture enforces strong bonds, positive and collaborative cultures, and a generally friendly environment. It is very people-focused, turning the company into a family where every person is valued and communication is a top priority. Employees develop a sense of belonging and become loyal to their company, just like they are to their own families.

Zappos and Tom’s of Maine are examples of companies that follow a clan culture structure.

Pros

      1-Teamwork

Decisions are made easier when everyone is involved and when everyone works together for the company’s best interest. Employees also look out for each other and create strong relationships within the organization.

       2-Loyalty

Staff will do everything possible to make sure that the company is improving and progressing. Employees are also less likely to leave since they feel comfortable, appreciated, and know the importance of their role in achieving the overall vision.

       3-Relaxed

The clan culture creates a laid-back and relaxed environment, making it an ideal place to work. People come motivated to work every day and feel comfortable addressing any issues they may face in a proactive manner.

Cons

         1-Exclusive

Taken to an extreme, clan culture can make current employees unwelcoming to outsiders, which can be detrimental to the company. When people are close and form a ‘clan’, they may become passive-aggressive towards new joiners which makes it difficult for newcomers to blend in quickly.

          2-Lack of structure

An undefined chain of command may cause problems with effective decision-making. If management is entirely top-down, mid-level leaders may not know when they can assert their own judgment on urgent issues. They may feel like they don’t really have a say and will just leave it to top management to act, even when they don’t have the exposure needed to truly understand the issue.

          3-Over collaboration

Everyone having a say in decision-making can be counter-productive and cause critical decisions to be delayed. Sometimes, important decisions need to be made on the spot, and there isn’t always time for meetings and group deliberations.

The Hierarchal Culture

The hierarchal culture is a traditional organizational structure, with different departments having their own leaders or managers who essentially make the decisions. Decision-making is reserved strictly for individuals in higher managerial positions. Good examples would be the military or e-commerce businesses, such as Amazon, where there is a clear ranking for every individual involved.

Pros

            1-Clear chain of command

Everyone knows where they stand, whom they report to, and who reports to them. This ensures job satisfaction and professional development and makes employees own their roles. This also makes work more enjoyable which boosts productivity, and subsequently, business growth.

            2-Professional advancement

Employees want to progress, develop their existing skills, and learn new ones on their road to success. A hierarchal structure provides the opportunity for such advancements, allowing passionate and motivated employees to progress and have more responsibility.

            3-Job security

Feeling safe and secure, being paid on time, and having clear responsibilities will result in employees’ staying loyal to the company.

Cons

             1-Unadaptable to change

A very rigid structure can cause a company to be slow and difficult to adapt to change, as well as inflexible towards the needs of their employees or meeting the demands of their customers. In today’s fast-paced world, this structure may not be the best if you want to keep up.

             2-Ineffective internal communication

Conveying a message to a superior can become a hassle. The message will have to go through multiple people or multiple channels before it reaches its intended recipient.

             3-No employee participation

This can cause employees to feel expendable, unseen, unheard, and less valued by the company. Companies tend to reach goals faster, be more efficient, and provide better services when they collaborate with their employees and allow them to participate in decision-making.

The Market Culture

Companies adopting a market culture are very result-oriented. Internal competition is valued, and winners are rewarded. Employees are expected to be constantly at the top of their game, and those who are consistent are rewarded financially or promoted. Tesla and General Electric are examples of market structure-driven companies.

Pros

      1-High engagement

This structure encourages employees to be proactive by being constantly pushed and motivated by their leaders, which helps them improve and expand their skills and knowledge.

      2-Competitive awareness

Being always aware of the market and its fluctuations, as well as being ready to react to any new trends, can give market-oriented companies an advantage over their competitors.

       3-High profits

Employees are constantly being pushed to achieve greater results. They are always mindful of customer needs and are result-oriented, which leads to higher revenue.

Cons

        1-Over competitive

High competition amongst employees can lead to mounting tensions and the team breaking down, ultimately lowering team productivity and morale.

         2-High costs

Trying to keep up with the changes in the market and industry will require extensive market research, which can be extremely costly.

         3-Burnout

Constantly pushing employees to do more and strive for more can lead to mental as well as physical burnout, which negatively impacts productivity.

The Adhocracy Culture

A company with an adhocracy culture is heavily focused on innovation, risk-taking, and flexibility. Employees are encouraged to participate and voice their ideas regardless of their position. Leaders encourage teams to take drastic and immediate decisions when necessary. Examples of companies that follow an adhocracy culture would be Google and Facebook, which are constantly innovating and pushing the market’s boundaries.

Pros

       1-Adaptability

People are free to come up with new ideas and solutions. There are no set rules or procedures that need to be followed in order to address an issue or come up with a plan.

       2-Quicker decision-making

This kind of culture helps speed up the decision-making process as there is no need to follow an extremely bureaucratic procedure. The company can progress and move forward with new concepts and ideas immediately.

       3-Creativity and innovation

The adhocracy culture gives employees more creative freedom, regardless of their position or title within the company. This kind of structure also tends to attract a lot of talent.

Cons

        1-Unclear

Free thinking and coming up with ideas can make the decision-making process frustrating, especially when there is no clear leader.

         2-Unpredictable

The lack of a formal structure can make it difficult for teams to be coordinated. Enforcing rules and regulations can also be challenging.

         3-Cost

Maintaining a high level of flexibility is costly, especially when spending on resources, employee training, and new technologies.

There is no number one when it comes to company cultures. Each culture has its own advantages and disadvantages, and it comes down to the company’s owner to decide which culture to adopt based on goals and visions. However, it is always essential to adopt a culture that fosters great relationships and makes employees feel appreciated.

Discover 4 different corporate cultures. 

Discover 4 different corporate cultures.  

Discover 4 different corporate cultures. 

Discover 4 different corporate cultures.  

Discover 4 different corporate cultures. 

Discover 4 different corporate cultures.  

Discover 4 different corporate cultures. 

Discover 4 different corporate cultures.  

Discover 4 different corporate cultures. 

Discover 4 different corporate cultures.