What You Need to Know About Company Organizational Culture

What is Company Organizational Culture?

Company organizational culture is defined as the attitudes, behaviors, and values of a specific enterprise. Company organizational culture is incredibly influential for both the employee experience and work environment overall.

A primary objective of organizational culture is to guide employee behavior in the workplace. Developing and maintaining a strong organizational culture can supply businesses with a competitive advantage and massive financial rewards.

Work culture encompasses virtually every business process performed. Business processes ranging from decision making to organizational structure are heavily influenced by corporate culture.

4 Factors That Shape Organizational Culture

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Human resources possess a prominent role in shaping organizational culture throughout the entire employee experience. As one of the foundational steps of both creating and maintaining an established organizational culture, human resources are responsible for assessing applicants for their cultural fit before hiring.

Additionally, human resources must make sure to carefully consider organizational culture when developing orientation, training, onboarding, and performance management programs. All of these components of the employee experience should be compatible with core values and company objectives.

Although every organization has a company culture, there are some prominent factors that make certain company cultures unique from others including-

1. Hierarchical Structure

Every organization needs to clearly define its hierarchical structure. Generally, the lower level of the hierarchy a business holds, the less conventional the enterprise is.

The 3 main hierarchical classifications assigned to companies are low, moderate, and high. High hierarchy businesses typically possess an organizational structure that is strict and traditional. For example, a law firm or medical industry business may decide on establishing a high hierarchy.

A low hierarchy enterprise is one where employees feel comfortable confronting or challenging workplace authority. Unfortunately, this is not always a good attribute and can create organizational structure dilemmas.

Moderate hierarchy companies are a hybrid between the 2 other structures. Moderate hierarchy enterprises generally have a less strict organizational structure and a work environment that is more casual.

2. Overall Orientation

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Business professionals must decide if their corporate culture will be focused more on the way people feel working at their business or the completion of tasks. A workplace culture that is strongly people oriented considers the work life balance of their team members and comprehensive employee experience as their highest priority.

A successful people oriented organizational culture integrates employee engagement and team building initiatives into both their company values and work environment overall. People oriented corporate cultures are more likely to produce happy employees that are more productive and profitable in both the long term and short term.

Alternatively, a strong task oriented company culture seeks profitability and productivity through processes performed. A task oriented organizational culture places less influence on the employee experience and considers labor first during decision making processes.

Every organization also has its own functional orientation. Examples of functional orientations range from operations to marketing. Functional orientations are largely defined in relation to the marketplace and historical choices.

3. Company Values

Company values are the core values that drive and direct organizational culture. Defining core values depends on the specific objectives of an enterprise.

Examples of different company values are businesses that hold a people orientation as opposed to a team orientation. While team orientation emphasizes team members collaborating, people orientation focuses on individual workers.

Additional examples of company values include stability versus innovation. While innovative core values promote risk taking and exploration, stability core values prefer predictability and assurance.

4. Organizational Subcultures

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While every organization has a dominant culture, subcultures also necessitate attention. Subcultures can benefit or severely negatively impact an enterprise, depending on their objectives and purpose.

Subcultures can develop within an organization or between different locations. For example, a regional culture may significantly vary from the organizational culture that executives attempted to establish originally.

Subcultures can also form in retaliation to incongruent company cultures as an attempt for employees to cope. For instance, if employees feel their opinions are not validated by management, they may establish their own decision making and risk taking procedures.

Alternatively, a healthy subculture could lead to a culture change for the entire organization. If management notices a particular subculture forming, human resources should pay close attention to its influence on both organizational structure and overall company culture.

Key Takeaways

  • Organizational culture important considerations include hierarchical structure and company values.
  • From onboarding new hires to creating employee development programs, the role of human resources in organizational culture is critical.

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