Corporate culture encompasses beliefs, values, and other cultural elements that define a company. Different types of corporate culture exist, some hierarchical and focused on control, while others emphasize creativity and innovation. A consistent corporate culture can unify employees and improve efficiency and productivity.
Corporate culture is a type of organizational culture that encompasses the various beliefs, values, and other cultural elements that define a particular company. There are many different types of corporate culture that often mix, even within individual companies. Some are defined by the founders of a company when they build the business with specific goals based on certain values. Others are imported as companies hire more employees with different knowledge, experiences and values. Over time, these different values held by management, employees and other people important to the company blend to form the overall corporate culture.
There are different types of corporate culture that define the organizational and, to a significant extent, social aspects of a given enterprise. Some are strictly hierarchical and aim for control, stability and internal efficiency. This is a type of culture and not just an organizational pattern because it reflects and reinforces how employees interact, the company’s values, and the particular way the company is built to achieve its goals. Such a corporate culture might be hierarchically structured but might be more focused on competition and external concerns rather than internal efficiency.
Some corporate cultures are based less on control and organization than on freedom and creativity. These emphasize creativity, flexibility and innovation over rigorous organization and efficiency. Such a culture can be built on the idea that strict organization and hierarchical structure stifle creativity. Employees will interact with each other and with their managers drastically differently than employees in more control-oriented corporate cultures. Individuals and teams can, for example, have much more autonomy.
There are pros and cons associated with all different types of corporate cultures. One that is too firmly based on control and stability, for example, can stagnate because it suppresses free thought, individuality and creativity. On the other hand, a company that allows its employees too much autonomy can be inefficient if the employees are not particularly self-motivated. The culture defined by a company’s founders can also clash with that emerging from employees in the workplace. A consistent corporate culture can, however, unify employees, increase overall job satisfaction, and dramatically improve a company’s efficiency and productivity.
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