Types of Corporate culture

Cultural elements and their relationships create a pattern that is distinct to and organization. However, organizational cultures have some common characteristics.

As is true of organization designs, different organizational cultures maybe appropriate at different times an situations. Which no one type of culture being ideal for every situation .However, some employees prefer one culture to the other. Employees who work in organization with culture that fits their own view of an ideal culture tend to be committed to the organization and are optimistic about its future. Corporate culture can be of the following types:

1.    Bureaucratic culture:

An organization that values formality rules, standard operating procedure ad hierarchical coordination has a bureaucratic culture.Long-term concerns of bureaucracy are predictability, efficiency and stability. Behavioral norms support formality over informality. Managers view their roles as good coordinators, organizers and enforcers of written rules and standards. Tasks, responsibilities and authority for employees are clearly defined. The organization’s rules and processes are spelled out in manuals and employees believe their duty is to follow them.

2.    Clan culture:

Tradition, loyalty, personal commitment, extensive socialization, teamwork, self-management and social influence are attributes of a culture. Its members recognize and obligation beyond the contractual agreements. Loyalty is rewarded by security. Because the individuals believe that organization will treat them fairly in all respects and aspects, they hold themselves accountable to the organization for their actions. Longtime clan members serve as mentors and role models for the new members. These relationships perpetuate organization’s norms and values over successive generation of employees. In this type of culture, members share a sense of pride in membership. They have a strong sense of identification and recognize the interdependence of organizations and members. 

Depending on the types of norms, the cultures may or may not generate risk taking behaviors or innovation.

3.    Entrepreneurial culture:

High levels of risk taking, dynamism and creativity characterize an entrepreneurial culture. There is commitment to experimentation, innovation and being on the leading edge. This couture doesn’t just quickly react to changes in the environment; it creates change. Effectiveness means providing new and unique products and rapid growth. Individual initiative, flexibility and freedom foster growth and are encouraged and well rewarded.

4.    Market culture:

The achievement of measurable and demanding goals, especially those which are financial and market based (e.g.,  sales growth, profitability and market share) characterize a market culture. Hard-driving competitiveness and profit orientation prevail throughout the organization.

In market culture, the relationship between an individual and the organization is contractual. There is clear agreement on what one can expect from the other and the formal control orientation is quite stable. The individual is responsible for some level of performance and the organization promises a specific level of rewards. However, the organization does not promise security and the individual does not promise loyalty. In this culture, superior’s interaction with subordinates largely consists of negotiating performance-reward agreements and/or evaluating requests for resource allocation. The absence of long-term commitment of both the parties results in a weak socialization process. Social relations among co-workers aren’t officially emphasized, and few economic incentives are tied to direct cooperating with peers. The pure official relationships shared by the members with each other may not result in personal network. The market culture is often tied to monthly, quarterly and annual performance goals based on profits.

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