In today’s competitive business world, any company that wants to stay ahead of the competition must clearly define its goals and have a clear roadmap for achieving them. Fundamental to achieving these goals is having a consistent company culture.

What is corporate culture?

Corporate culture, also known as company culture, refers to a set of beliefs and behaviours that guide how a company’s management and employees interact and handle external business transactions. Corporate culture can have a huge impact on the fortune of a company and its employees. There are four distinct types of culture: clan culture, adhocracy culture, market culture and hierarchy culture. Each of these cultures has its own unique goals.

While each culture is unique, certain components define a great culture. Some essential features of corporate culture include vision, values, practices, people, narrative and place. There are other factors that influence culture. However, these six features can provide a firm foundation for shaping a strong culture.

A clear understanding of the corporate culture definition can help managers to define the right values and culture for their organisation.

Four types of organisational culture

Four distinct types of organisational culture emerge from the Competing Values Framework. What are these four different types of corporate cultures? Here is a list of the cultures and what they are all about.

Just as there are different types of corporate culture, they are all geared at helping to achieve set goals through a clear vision. Indeed, some of the functions of corporate cultures are to provide a sense of identity, define boundaries and generate commitment from employees.

10 characteristics of a great corporate culture definition

There are several factors to consider when thinking about how to describe company culture. These key elements of corporate culture define the culture of an organisation and help to shape the organisation’s personality.

  • Details and shareable goals – the attention employees give at the workplace is important as it determines the success of any business. This is why the management must definehow much attention to give to details to achieve shared goals.
  • Strong teamwork – this is one of the most important components of corporate culture. Compared to individual efforts, synergised teams are more likely to deliver better results. Organisations have to create teams that work together effectively through their complementary skills.
  • Continual training and learning – employees have to continually improve their skills and knowledge in order not only to perform better but also achieve growth. This includes personal, professional and financial growth.
  • Strong leadership – a strong leadership should provide clear communication, warmth, assistance and support to their subordinates. This helps to earn the confidence of employees.
  • Adaptability and agility – a great organisational culture is adaptable, ensuring that adjustments can be made to meet ever-changing challenges and deliver on customer expectations.
  • Defined structure – this refers to the degree of supervision that helps to control employee behaviour. It’s also the extent to which clear objectives and performance expectations are created.
  • People orientation – an organisational culture should focus on people, to create a better work environment for employees.
  • Innovation and risk-taking – places where people take risks have high chances of returns. Innovation also helps place organisations as pioneers and industry leaders. Businesses should allow room for innovation and risk-taking.
  • Outcome orientation – rather than focusing on processes, the business model should pay more attention to results.
  • Aggressiveness – aggression and market-dominating strategies in a stable work environment will help deliver results and achieve set goals.

One of the best ways to ensure that company values will help shape a great culture is to go through characteristics of organisational culture, with examples. Managers can then clearly see how the company culture should be defined.

Importance of corporate culture

Corporate culture is of vital importance to company success. By shaping how a business conducts its operations and reminding employees to work towards set goals, the culture helps to promote growth. Here are some of the benefits that reveal corporate culture’s value.

Employee retention

One of corporate culture’s benefits is that it helps with promoting employee retention. A company with great culture will not only attract the best talents in the industry but also keep employees for longer. Employees love companies that promote their growth and provide a great working environment. Encouraging open communication and engagement will also make employees feel valued and appreciated. This ultimately saves the company the trouble of having to hire and train new employees now and then.

Great public brand

Today, a company’s public brand helps it attract and retain customers. Company culture has a lot to do with how a business conducts its external transactions and connects with clients. A strong culture will promote a healthy, respectful relationship with customers and other stakeholders. When its stakeholders associate a company with positive values and behaviours, they are more likely to do business with it.

Enhanced performance

Maximising performance ensures that companies get the best out of the talents it hires. Market culture focuses on getting down to business, getting things done and delivering results. Employees are goal-oriented, directing their efforts towards pushing the company closer to its goals. The leadership also plays a role in ensuring that employees have what they need to deliver on their responsibilities. The result is enhanced performance that ensures growth in both market share and revenue.

Quality

Another of the most prominent benefits of organisational culture is its ability to help companies deliver quality products and services. Focusing on the highest standards and creating the ideal atmosphere for workers to deliver products that meet these standards helps achieve customer satisfaction. Cultural standards for excellence translate to quality products and services, helping the company earn a reputation for high quality.

Improved employee wellbeing

Company values and culture play an important role in determining how employees are treated and the perks they get. Companies with health-oriented programmes and a great work-life balance have better employee wellbeing. Similarly, providing room for the growth and development of employees goes a long way towards a happy and fulfilled workforce. The best company values do not overlook employees’ physical and mental health when stressing performance.

Knowledge of the importance of culture in a business environment helps managers to define company values and culture clearly. However, company culture has to be practiced to give it meaning. The defined values should guide the both the leadership and employees’ behaviour. In this way, the company culture will reveal itself in everyday activities and processes, and employees will easily fit in with the culture.

How to educate your employees on your corporate culture

Implementing company culture takes time and patience. For employees to understand and appreciate company values, there’s a need for continuous enablement and training. We can help grow a company culture of ongoing learning and training. After all, our mission is to help companies ignite growth. Find out more and get a demo today.