Posted 11 months ago - by

What Is Company Culture and Why Is It Important?

Company culture is the environment in which your company operates and what your employees experience on a regular basis while working at your company. This includes your core values, mission, goals, and even policies. A company’s culture can also be cultivated through perks, benefits, and even activities.

Company culture is often used as a form of recruitment and retention. It also contributes to your reputation. Good company culture is essential to maintain a productive workforce.

How does it work?

There is no set standard on what the ideal workplace is, and each company needs to develop its own culture that works for them and their employees. Good cultures often evolve over time as their work environment changes.

Although all workplace cultures vary there are four identifiable types:

1. Clan Culture

Clan culture is largely based on a team-based mindset. Many often compare it to a network made up of a large family in which it is very collaborative and carries a big sense of loyalty. There is a lot of tradition and common ground in these types of cultures. Often these types of cultures are more difficult to maintain as the company grows. 

2. Adhocracy Culture

Companies that have this type of culture are huge on taking risks. Employees are willing to take chances and leaders tend to be consistently inspirational to push their workforce to the next level. They are very willing to adapt and encourage change through innovation. Although these companies tend to be known for their cutting-edge approach, there is always a potential downside in taking risks. It can lead to heavy competition amongst employees which can be both good and bad. If not handled properly, this culture can get too fast to keep up with. 

3. Market Culture

Market culture is mainly focused on the bottom line of the company and prioritizes profits and the company’s larger fiscal goals. These types of companies can be very successful and profitable. However, the focus on quotas and numbers can eventually lead to an increase in turn-around rates and a decrease in internal satisfaction- Which can ultimately hurt the bottom line. 

4. Hierarchy Culture 

Hierarchy culture has a more traditional approach in which there is an emphasis put on processes and procedures. Leaders focus on a hierarchical structure for its employees to work towards and follow strict guidelines and practices. These companies have a clear sense of direction and can be very stable. However, they do not leave a lot of room for creativity or collaboration which can stunt their own growth.

These different types of company cultures come with varying pros and cons. When cultivating your own culture, regardless of which route is taken, it is important to keep in mind the cons and how they can ultimately be detrimental.

Your company’s culture says a lot about you. It can dictate how your entire organization is managed and how it produces results. Evaluate where you are currently at, what is important, and what aligns best with your vision going forward.

Looking for a payroll service provider you can rely on? Payroll Systems offers payroll solutions that are easy to scale and a dedicated payroll specialist to ensure your specific payroll needs are met. Talk to us to learn more.

Related Posts

Your 2022 American Disabilities Act (ADA) crash course

National Disability Employment Awareness Month is observed every October to commemorate the many and varied contributions of people with disabilities to America’s workplaces and economies The...


What California Cannabis Bills Made the Cut 2022?

In 2021, the state of California launched its new Department of Cannabis Control department The department immediately got to work and pushed forward several bills that Governor Gavin Newsom had...


How Is 360 Feedback Useful During the Hiring Process?

Feedback from an employer, the candidate, and the recruiter is highly useful information to better understand your hiring process With the labor shortage many are experiencing, an efficient hiring...


2022 HR Calendar: Federal Holidays, Tax Deadlines & Other Important Dates

It may be hard to believe but 2021 is coming to an end and 2022 is just around the corner With the new year on its way, we put together a handy 2022 HR calendar with both federal holidays and...


California Marijuana Tax Revenue Continues to Offer Billions in Grants

Back in July of 2021 it was announced that California marijuana tax revenue will allocate half a billion for new community programs The state’s Department of Cannabis Control (DCC) announced that...


5 Ways to Help Employees with 2022 Open Enrollment

2022 Open enrollment for employee benefits allows employers to reassure employees of their commitment to providing support through their benefits programs However, many organizations continue with a...


Leave a Reply

Your email address will not be published. Required fields are marked *

This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.