Exploring Organizational Cultures: Find Your Style
What are employees looking for in their professional lives?
If you think it's the money, you might be wrong, it's the meaning they're looking for.
Really?
Yes, 91% of managers believe that a candidate's fit with the company culture is more important than the skills and competencies they possess.
Let's get to the bottom of this question and uncover the mystery that surrounds it.
What is organizational culture?
Put simply, company culture is a tangible force that influences how employees interact with each other, make decisions, and work together to achieve company goals.
Components of culture
Culture can be divided into various components that form the core of an organization's identity and brand image. The most important components are:
- Values and beliefs
They are the fundamental forces of an organization that determine employee decision-making, behavior and interactions. They show what the organization stands for and what it focuses on.
Some examples include integrity, innovation and teamwork.
- Norms and practices
The unwritten rules that govern employee behavior within the organization. This can mean different communication styles, work ethic, punctuality, work style, etc. Practices are the actual behaviors exhibited by employees.
For example, open communication can lead to frequent staff meetings and feedback sessions.
- Leadership behavior
The behavior of managers and their management style form the basis for all employees in the company to follow in their footsteps. When leaders embody the culture and values, their importance is reinforced among employees.
- Artifacts and symbols
They are the visible signs of the organization, such as logos, office design, dress code and the physical atmosphere of the office. They make employees feel welcome and reinforce a sense of belonging.
Types of organizational culture
While there are many arguments regarding the types of organizational culture, Harrison's (1993) model outlines four important dimensions or types, discussed below:
- Power culture
- Role culture
- Performance culture
- Support culture
- Power-oriented cultural dimension
The centralization of power and control characterizes this type of organizational culture.
Motto: "Strength lies in authority, hierarchy commands unity"
Motto: "The chain of command is final, respect the formal rules"
The organizational structure is hierarchical, with a central figure surrounded by subordinates. It emphasizes authority, rational procedures and division of labor. The central figure often influences
| Merits | Demerits |
|---|---|
| Enables quick decision-making. | Leaders at the top may abuse authority. |
| Clear hierarchy and reporting structure. | Employees lack empowerment in decision-making. |
| Promotes organizational stability and order. | Communication style lacks transparency. |
| Quick implementation of decisions. | Resistance to innovative ideas and initiatives. |
| Clear direction and guidance from the top. | Hinders creativity and different perspectives. |
- Dimension of role-oriented culture
She attaches great importance to existing structures and procedures. Job descriptions, specialization and hierarchical chains of command are the most important components. The most important decisions are made based on rules, and authority comes from formal positions.
Motto: “Precision in the process and stability in the structure”.
Motto: “Follow the process, master your craft.”
This ensures consistency and predictability and is therefore often associated with bureaucratic structures.
| Merits | Demerits |
|---|---|
| Promotes Organizational Stability. | Limited adaptability to change. |
| Specialized Expertise. | Hinders Creativity and Innovation. |
| Hierarchical Chain of Command. | Leads to Micromanagement. |
| Reduces Confusion. | Limits Individual Initiative. |
| Minimizes Uninformed Decisions. | Restricts Employee Autonomy. |
- Performance-oriented culture
Organizations of this type align their routine tasks and activities with their core values, vision and purpose. They strive to unite like-minded people to focus on a single goal at the same time.
Motto: “Together we triumph”
Main idea: "Success lies in collaboration, progress in innovation".
The emphasis is on completing tasks rather than hierarchical positions, with an emphasis on teamwork, adaptability and innovation. It is best suited for organizations operating in a rapidly changing environment.
| Merits | Demerits |
|---|---|
| Encourages Adaptability and Innovation. | Lead to Overwork and Burnout. |
| Values Goal Attainment. | Potential for Effort Fragmentation. |
| Supports Quick Decision-Making. | Neglects Attention to Individual Efforts. |
| Creative Problem-Solving. | Chaotic and Disorganized at times. |
| Aligns with Fast paced Environment. | Over-dependence on Team Dynamics. |
- Supportive culture
It is based on mutual trust between employees and the organization. It is characterized by minimal formalization and centralization. People-oriented organizations follow it and employee well-being comes first.
Motto: “Care builds a community”.
Motto: “Empower each other, win together”.
Authority is assigned based on competence and decisions are made based on people. This promotes a feeling of collaboration, helpfulness and belonging.
| Merits | Demerits |
|---|---|
| Positive Work Environment. | Lacks Employee Accountability. |
| Employees at the forefront. | Slow Decision-Making. |
| Encourage Work-life Balance. | Lack of clear Hierarchy and Authority. |
| Values Individual growth. | Struggle with Rapid decision-making. |
| Boosts Employee Satisfaction. | Difficulty in enforcing Discipline. |
A clear understanding of these dimensions helps companies identify the gaps in their organizations and make informed decisions about what type of culture fits their mission, values and purpose.
So next time they can adopt a type or a mix of the above cultures. Organizational culture can also consist of other types, but it is important to know your mission, vision and purpose before choosing the type that best suits your organization.
Case studies on organizational culture in MAANG companies
The culture in MAANG companies is often the benchmark for others to emulate. Here is a clear distinction of the organizational culture they pursue:
Microsoft - innovation and creativity at heart
The new phase of Microsoft's cultural pursuit begins with its rendezvous with innovation and creativity. While leaders are very clear about the latest trends and their flexibility to adopt them, they place emphasis on building a new workforce with "right brain qualities." So you look for employees with skills like empathy, curiosity, adaptability and open-mindedness.
Technology will be the driving force of this change, saving employees a lot of time that they can use for radical ideas, solving intractable problems, and exploring new growth opportunities. The new Microsoft is customer-focused, diverse and inclusive, and a family with shared goals and mission.
Apple - Changing vision of leadership
Given the company's rapid growth, Apple executives recognized that a change in the way they work, motivate them, and change their work environment was essential. So the visionary leadership team, led by Vice President of Applications Roger Rosner, introduced the Discretionary Leadership Model.
According to this model, employees, regardless of their position and tasks, must spend 40% of their time on innovation and taking full ownership of projects. 30% of time dedicated to learning new skills, from developing general skills to mastering the latest technology. 15% of the time for teaching and the remaining 15% for delegating tasks to the team.
Apple's unique approach to developing specialized leaders makes the company unique and demonstrates its commitment to the continuous development of not only its products, but also its workforce.
Netflix - Culture is all it takes
Netflix, synonymous with entertainment, is not the only identity. The market leader is also known for its "Culture Deck," a 128-page presentation that redefines the meaning of compensation and culture. What's so unique about it?
They give their employees sole decision-making power over their projects and give them the authority to make the final decision to a certain extent.
Netflix CEO Reed Hastings described the company's culture as "driven by the following seven aspects: values, high performance, freedom and responsibility, context over control, strong alignment, market-leading pay, and promotion and development.
The company's development plans and growth are determined by the well-trained and market-leading employees who can move efficiently in the right direction. In doing so, Netflix has created a culture that attracts and retains top talent.
Amazon - principles in the veins
Amazon's culture and work environment is shaped by 12 leadership principles that impact the organizational structure and daily activities. These are: Customer Obsession, Inventing and Simplifying, Ownership, Being Much Right, Hiring and Developing the Best, Insisting on the Highest Standard, Big Thinking, Drive, Frugality, Vocal Self-Criticism, Having Backbone, Discussing and Committing, and Delivering Results.
These principles form the backbone of their hiring activities and employee development programs and determine employees' abilities to remain in their work environment.
Amazon's culture is also heavily influenced by the visionary Jeff Bezos, who turned the company into an entrepreneurial company that continues to grow in leaps and bounds in a similar way. Amazon will forever be guided by its core values, leadership principles and culture, followed by many around the world.
Google - Culture and performance always go together
Google is the face of innovation and market revolution. Have you ever wondered what makes them the best? It is their ongoing priority for the “best workplace culture.” The company's core operating model rests on one thing: organizational culture.
The key components of their culture are: innovation, leadership, decision making and communication that drive employee performance. They make them a team that constantly strives to achieve excellence and develop collective knowledge.
Google believes that the true motto of an organization is to create a culture that drives performance, with leadership competence at its core.
How do you choose an organizational culture that fits the company's values?
Choosing an organizational culture that fits the defined core values seems daunting.
But don't worry, here is a step-by-step guide to help you with this process:
- Define your organizational values
The first step is to clearly define your core values and align them with the organization's vision. The core values serve as guiding principles to define your path to success and your future goals.
- Evaluate your current culture
Assess your organization's existing culture by examining its communication style, decision-making process, behavior patterns, and work environment. These elements can be used to determine your company's current culture.
- Identify the properties you want
Identify the key characteristics of your best employees, the way they interact and collaborate with one another, and the way leaders communicate. All of this helps narrow down the desirable traits that need to be cultivated.
- Involve key stakeholders
Analyze industry trends and market conditions to reflect changing circumstances. Then get all key stakeholders on board and brainstorm to gather their input; Involving employees is a must in this step.
- Create an action plan
Develop a detailed plan for transitioning to a desirable culture, aligning leaders' thoughts, and making it targeted to gain positive support from employees. Always remember that culture serves your most important customers - your employees.
- Communication and transparency
Clearly communicate the reason for this change, get executive buy-in, and then communicate it to all levels of the company. It is also important to train employees for this change. HR managers should stay in constant contact to remove potential obstacles.
- Measure your progress
Define metrics to measure the progress and success of the process by looking at employee goal orientation and satisfaction. Celebrate each milestone by promoting it throughout the company, helping to streamline the entire process.
It's important to note that this is a continuous process, and that you will seek employee feedback along the way so that you remain relevant to their evolving needs and pass the test of mastery of the organizational culture.
Final word
Are you struggling with the idea of building a progressive culture that keeps your company on par with the competition?
IceHrm, your trusted HRMS colleague, has a secret superpower in store that will not only streamline your HR processes but also make your organization's culture the best. With tools like HR reports, you can test the positive impact of your cultural efforts, help your employees align their individual OKRs with company goals, and answer their challenges along the way with the click of a finger.
Unlock the power of organizational culture with IceHrm. Streamline HR processes and foster a thriving workplace aligned with core values.