Did you know that maintaining strong company culture is just as important as employee productivity and turnover? We would even say it’s more important because not only does it affect the way your employees communicate with each other and your customers, it has the potential to help your company achieve its goals.
Unfortunately, measuring culture is an, often, overlooked aspect of company policy. Keep reading to find out why it should be at the very top of your priority list and the benefits of building your strategy around a solid corporate culture.
The Relationship Between Culture and Job Satisfaction
‘I Quit.’ According to numerous studies done in the United States and around the world, scores of employees have said those words in the last year alone. The Bureau of Labour Statistics in the United States (US) reported that by the end of February this year, 4.4 million people had already quit their jobs.
It’s a sobering statistic for the US. Not to mention the fact that this trend can also be seen in other parts of the world where the level of unemployment is greater.
The truth is that employees are more willing to step out of a 9-5 job without a Plan B than to stay in a toxic or unfulfilling work environment. Yes, job satisfaction matters - now more than ever. And it definitely doesn’t take a rocket scientist to perceive the effect low morale might have on productivity and, eventually, profit in a company.
Some of the most basic human needs include feeling valued, being rewarded and knowing exactly what one is working towards. All of this can be addressed and achieved through a well-established organisational culture.
What Makes a Strong Culture
How many times have you scrolled through LinkedIn and seen posts stating that employees don’t quit jobs, they quit managers? To be honest, we’ve lost count.
Part of the premise of establishing and maintaining a good culture in companies is that it filters down from management to the employees. Everyone is on the same page and working towards the same goals. The entire team can then develop a vested interest in the growth and prosperity of the company. As far as strategies go, it’s basic but powerful.
So what are the benefits of a strong company culture?
A purposeful organisational culture builds trust between team members, and between employees and employers. The lines of communication are opened and there’s a collective vision in place.
Can you imagine the ease of doing business if each team member knows exactly what is needed to make the dream work? There would be little to no need for micromanagement and this would only cement the relationship between the staff.
As an added bonus, companies that are cohesive and collective in their outcomes automatically gain a competitive advantage in their respective markets. Confident employees equal better customer service, which equals more customers and/or return business.
Another benefit can be seen in the recruitment sphere of the business. When the corporate culture is clear and inclusive, the best-suited candidates are easier to discern and eventually, employ.
This can save you both time and money regarding training and upskilling employees - if the team you have is aware of your vision and goals, they may be less likely to leave later because they were made part of the company culture from the start.
How Culture Influences an Organisation
In a professional environment, there’s nothing worse than confusion and obscurity - it can deplete the energy and morale of team members. A weak culture (or the lack of one) can also lead to frustration and brain drain for all parties involved when issues or challenges arise.
In addition, company management may come across as disorganised or disingenuous depending on how the situation is handled.
As company culture refers to goals, values and practices, the same can be said for customers and any potential issues that may surface regarding customer service and product and/or service delivery.
A well-established corporate culture covers all of these points and ensures any issues are dealt with promptly and within reason.
Now before you retort that good organisational culture and the need for measuring culture is mainly applicable to small to medium-sized businesses, the fact is every type or size of business can benefit from it.
Having said this, if your business is scalable and your goals include growth and expansion at some point, establishing an inclusive and solid company culture at the start can save you time and energy. You’ll be able to share this with all of your employees - present and future - and they will be able to see future growth for themselves, while in your employment.
4 Types of Culture
The concept of corporate culture is growing, so much so that it has been researched and quantified to the point where four types of cultures have been established.
The important thing to remember here is that no one is better than another so it’s up to business owners and management teams to review each type and decide which one best suits the strategy of the organisation.
We’re going to summarise the four types for you below.
1. Market Culture
This type of culture is entirely focused on the bottom line and getting results. Targets and quotas form part of the company’s main objectives. While this can be a pressured and challenging environment to work in, it can also foster a vibrant and competitive atmosphere, which some companies thrive on.
A common disadvantage of market culture is the growing possibility of employee burnout from having to constantly perform to achieve targets but since profitability is the goal, and is often achieved, some employees may find this to be a fair trade.
2. Clan Culture
As per the name, the focus of a clan culture business is teamwork and collaboration. Developing and maintaining strong relationships is key but this is definitely going to be a challenge once the business expands and grows. Productivity also, often, suffers in this type of environment due to the constant collaboration and longer periods of time needed for decisive decision-making.
While there may be confusion as to how the hierarchy or linear nature of clan culture works, communication is openly encouraged and the working environment can be highly engaging and suited to market growth.
3. Adhocracy Culture
Aspirational and innovative are the best terms to describe an adhocracy culture. This type of organisation prides itself on taking risks and devising new and creative ways to get tasks done. While the rewards may be high, the risk is too and one or two very bad decisions could be detrimental to the business.
An adhocracy culture could foster toxic competitiveness due to the need to constantly develop fresh and unconventional ideas but creativity is still the core focus of this culture, which is why professional development opportunities are more likely to be favoured in this type of organisation.
4. Hierarchy Culture
Tried and tested best describes the hierarchy culture. It follows the common corporate structure and is seen as conservative and stable. Having said this, it’s also difficult to be flexible and adapt to market changes in this type of organisation and company goals remain the primary focus over employee needs.
Hierarchy culture is quite rigid so new ideas aren’t often encouraged, however, company processes are formed in such a way that employees understand exactly what is expected of them. This can provide employees with a sense of security and predictability, which some workers and businesses thrive on.
6 Dimensions of Culture
Now that you know the four types of culture, you may be wondering what the significance of the dimensions of culture is.
When it comes to organisational culture, the interaction between employees, employees and employers and employees and customers is key. This is where the dimensions of culture come in.
It is based on organisational sociology and while they are viewed as separate concepts, they can work hand-in-hand.
Understanding these dimensions and how they align with different business models and culture types can support your efforts towards establishing and measuring culture in your specific business.
We’re going to give you a brief overview of each one below.
1. Organisational Effectiveness (Goal-Orientated vs Means-Orientated)
A goal-orientated culture is just that - employees are focused on goals and getting results or ‘the what’. This is despite the fact that those goals might necessitate taking risks. With a means-orientated culture or ‘the how’, employees take very limited risks and don’t look to put in a lot of effort.
2. Customer Orientation (Internally Driven vs Externally Driven)
Fostering an internally-driven culture means that the focus of the employees lies solely on business ethics and the perception that the company (and employees themselves) know what’s best for the customer. Externally-driven culture is all about meeting the customer's needs through a pragmatic approach as opposed to an ethical one.
3. Level of Control (Easygoing vs Strict Work Discipline)
This dimension of culture speaks towards internal structure and how flexible or rigid they are. An easygoing culture is fluid and unpredictable, to a certain degree. When it comes to a strict work discipline company culture, the environment is more rigid and cost-conscious.
4. Focus (Local vs Professional)
A local company places the focus on the unit in which they work, employees are guided to look at the short-term. In a professional-type company, it’s the opposite. Employees establish their identities through the content of their jobs and are long-term and/or externally focused.
5. Approachability (Open vs Closed System)
An open system is catered to openly welcoming new employees and is based on the premise that anyone would fit within the company structure. With a closed system, specific individuals are chosen to work within the company and, in terms of accessibility, the company is not really open to insiders or outsiders.
6. Management Philosophy (Employee-Orientated vs Work-Orientated)
In an employee-orientated organisation, employees are at the forefront. This includes taking their personal issues into account and taking responsibility for the well-being of the employees. Regarding work-orientated businesses, the focus is on getting tasks done as opposed to the welfare of employees.
In Conclusion
Establishing and measuring company culture is not to be taken lightly. It’s a considerable and thought-provoking process that takes job satisfaction, the type of culture within a business and various dimensions that play a part in how the business operates into account. However, if done correctly, a strong company culture can be the key to success and profitability for you and your employees.
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