The Business Culture

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Culture is a key component in business.

It has an impact on the strategic direction of the business.

Culture influences management decisions and all businesses. 

This article discusses the business culture

Business culture refers to the set of behavioral and procedural norms that can be observed within a company. 

This includes the following:

  • policies
  • procedures ethics
  • values
  • employee behaviors
  • attitudes
  • goals
  • code of conduct
  • benefits 
  • rules 
  • procedures 

One example of business culture can be seen at "Netflix".

This is encapsulated in their philosophy of "people over process."

In its business culture document, Netflix spells out its company values: 

judgment, communication, curiosity, courage, passion, selflessness, innovation, inclusion, integrity, and impact.

Types of business culture: 

There are 4 types - 

  • Clan Culture.
  • Adhocracy Culture.
  • Market Culture.
  • Hierarchy Culture.

 

Clan Culture:

A clan culture is a family-like or tribe-like type of corporate environment that emphasizes consensus and commonality of goals and values.

Clan cultures are the most collaborative and the least competitive of the four main corporate culture models.

Clan culture has an emphasis on developing shared understanding and commitment instead of a formalized communication process.

Typical characteristics of Clan cultures are: 

  • teamwork
  • employee involvement programs

whereas the core values represent participation, loyalty, and commitment. 

 

Adhocracy Culture:

An adhocracy, in a business context, is a corporate culture based on the ability to adapt quickly to changing conditions.

Adhocracies are characterized by flexibility, employee empowerment, and an emphasis on individual initiative.

Examples of adhocracy include most project or matrix organizations.

Among private-sector organizations, high-technology firms, particularly young firms facing fierce competition are sometimes organized as adhocracies.

 

Market Culture: 

Market culture is a type of corporate culture that emphasizes competitiveness not only between the organization and its market competitors but also between employees.

The market model is the most aggressive and capitalistic of the four common corporate culture models.

Market culture is all about profit margins and staying ahead of the competition. It is results-oriented with a strong external focus to ensure customers are satisfied.

Examples of companies driven by a market culture are:

  • Tesla
  • Amazon
  • General Electric.

 

Hierarchy Culture: 

Hierarchy culture, or hierarchical culture, is a type of organizational culture that emphasizes the following: 

  • long-term stability
  • consistent structure
  • a shared set of values throughout the entire organization.

The term “corporate culture” or "business culture" refers to the beliefs and practices associated with a particular corporation.

For instance, corporate culture might be reflected in the way a corporation hires and promotes employees, or in its corporate mission statement.

Some companies seek to associate themselves with a specific set of values, such as by defining themselves as an “innovative” or “environmentally-conscious” organization.

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