Corporate culture refers to the values, beliefs, and behaviors that determine how a company’s employees and management interact, perform, and handle business transactions.

A company’s culture will be reflected in its dress code, business hours, office setup, employee benefits, turnover, hiring decisions, treatment of employees and clients, client satisfaction, and every other aspect of operations.

IMPORTANCE OF CORPORATE CULTURE

A carefully considered, corporate culture can elevate companies above their competitors and support long-lasting success. Such a culture can:
1. Provide for a positive workplace environment
2. Create an engaged, enthusiastic, and motivated workforce
3. Attract high-value employees
4. Reduce turnover
5. Drive and improve performance quality and productivity
6. Result in favorable business results
7. Underpin a company’s longevity
8. Strengthen return on investment (ROI)
9. Provide an implacable competitive advantage
10. Clarify for employees the goals of their positions, departments, and a company overall
11. Contribute to the diversification of the workforce

TYPES OF CORPORATE CULTURE

1. Clan Culture
Clan cultures are about teamwork and collaboration. In such a culture, those in management function as enthusiastic mentors who provide guidance to subordinates. Good relationships, encouragement, trust, and participation are key aspects.

2. Adhocracy Culture
Adhocracy culture creates an entrepreneurial workplace in which executives and employees function as innovators and risk-takers. In this flexible environment, agile thinking is nurtured. Employees are encouraged to pursue their aspirational ideas and take action to achieve results that can advance company goals.

3. Market Culture
Market culture is focused on meeting specific targets and bottom line goals. This culture creates a working environment that’s competitive and demanding. Management is most interested in business results. Employees are encouraged to work hard and “get the job done”.

4. Hierarchy Culture
A hierarchy culture is a traditional corporate culture that functions according to a company’s executive, management, and staff organizational structure. That is, it follows the chain of command from top down, where executives oversee employees and their work efforts to meet specific goals.