Before you can truly understand your organisation’s culture you need to understand the common types of culture. With this in mind you can ask yourself if your organisation’s culture matches what you think it is.
Below is a model that showcases the 4 most common types of organisational culture.
The common types of organisational culture include;
In this type of culture the behaviour of employees is governed by formal rules and standard operating procedures, this type of culture disseminates stability. Examples of organisations that have this culture include, governments or fast food establishments. In Hierarchy cultures we see a respect for position, authority and therefore power. They will usually have very clearly defined policies and procedures which require managers to coordinate and organise others.
In a clan culture the behaviour of employees is crafted by tradition, loyalty, personal commitment extensive socialisation and self-management. Typically, a clan culture achieves unity through socialisation. Long term employees serve as mentors. Employees share a sense of pride in being associated with the business and peer pressure drives important behaviours.
A market culture represents the importance of achieving measurable and demanding goals that are aligned to market and financial outcomes. These companies tend to focus on Sales, profit and market share. In these environments’ employees are responsible for their own performance and they are rewarded in additional remuneration. Managers in this environment are not typically judged on their effectiveness as role models or mentors but by monthly, quarterly and annual performance targets.
Organisations that operate on an entrepreneurial culture are characterised by high levels of risk and thinking outside of the norm. There is a huge focus on experimentation and innovation. The Adhocracy culture works well in highly adaptive and changing environments requiring quick responses. It is even more flexible and independent than the Clan culture. Leadership here is typically visionary, innovative and entrepreneurial.
What sort of culture is present in your business?
Do you as a leader in your organisation understand what you must do to promote and live this culture? Most importantly do you know why your values exist and what strategies actions you should take to live your values and lead by example?
One way to evaluate your culture would be to conduct an Organisational Culture Survey or a Staff Satisfaction Survey. Seek feedback from the broader business and determine how the business sees the culture. The purpose of undertaking a cultural assessment is about measuring how far or near the desired culture is.
All organisations are different, and this difference is not just limited to their sector, size, and location. Respective management styles and organisational cultures have a substantial impact on how an organisation measures performance. The issue with most cultural and engagement survey platforms is that they use the same structure and questions for all organisations, with no room for flexibility and customisation. So, its important to consider this carefully when you are creating the questions to pose to your teams.
The most important role for a leader when it comes to culture and values is to not only understand it, but also believe it. It’s your role as a leader to make sure the culture is alive and well within your organisation and demonstrate to others how they can participate in living the values of the organisation. Ask yourself this question, when was the last time you evaluated your organisation’s culture?
Does your team genuinely understand your organisation’s culture, values and behaviours and do they clearly see how it is driving the organisation’s strategic objectives and ultimately realising the companies vision and mission?