What is corporate culture and why do organizations need it?

The concept of corporate culture in simple words

Corporate culture is the traditions and standards by which all processes in the company take place. It can include everything that makes up the individuality of the business, from the manner of communication between employees and the presence of a dress code, to the logo, corporate identity and transmitted values.

Unlike branding and positioning, which are aimed at how the company is seen from the outside, corporate culture, first of all, regulates interactions within the team.

Rules of corporate culture

The rules that make up the corporate culture of an organization can be formal and informal. For example, if a congratulatory poster from the team is prepared in the office for an employee's birthday, and the birthday boy arranges a mini-corporate party at the end of the working day and treats colleagues, this is an informal tradition. And if every year (for example, before the New Year holidays) all employees receive a bonus, this is, in most cases, an official rule recorded in the documents.

The corporate culture of the company cannot be completely invented from scratch and imposed on all employees. As a rule, it is formed naturally in the process of business development, and the management only directs its vector, encouraging positive trends. If you introduce a culture without assessing the real situation in the team, then it will not take root or even worsen the relationship between management and subordinates.

Therefore, usually, only part of the rules is officially fixed:

• dress code;
• the number of breaks;
• the format of communication with customers and business partners, etc.

Other elements, such as addressing "YOU" or "YOU" within the team, corporate parties and other traditions, are advisory in nature.

Structure of corporate culture in an organization

Elements of the corporate culture structure can be different depending on the age of the company, as well as the field of activity and/or management policy. At the same time, as a standard, it includes:

• symbols - company name, slogan, corporate identity, and so on;
• mission is the main "great" goal of the brand, its way to make the world a better place;
• company values are the principles on which interaction with customers and the target audience, partners, and colleagues is based;
• rules of conduct for employees – fixed standards that regulate internal work processes, for example, dress code, system of fines and bonuses, number of breaks;
• norms of relationships in the team – informal and official rules by which interaction between employees takes place;
• Traditions are rituals that were formed naturally.

Functions of corporate culture

The main function of corporate culture is to unite the team and increase its motivation and involvement in the work process by creating a healthy microclimate within the team.

At the same time, its other tasks can be distinguished:

• image creation – due to the external elements of corporate culture, potential customers, partners and investors have a certain impression of the company;
• increased motivation – has a positive effect on the involvement of employees who are aware of their value for the company and feel part of the team, which is a non-financial incentive for work;
• improving relationships in the team – this includes traditions, small rituals, joint participation in onboarding of new employees, as well as other joint activities that create a comfortable working atmosphere and help to effectively resolve emerging conflicts;
• optimization of business processes – the formed hierarchical structure, established internal corporate communication, as well as a clear distribution of areas of responsibility of employees speed up work and make it more efficient;
• Finding new like-minded employees – This function of the corporate culture allows you to find new motivated employees who are close to the company's values.

Examples of corporate culture in well-known companies

Now, let's look at examples of the corporate culture that has ensured the success and global fame of famous brands.

1. Netflix is a company that encourages employees to express any personal opinion and values frankness. No one is punished for criticizing the decisions of colleagues or management, if they are expressed correctly and reasonably. This approach allows you to effectively generate new ideas and not limit the staff in development;
2. Google is a brand that cares about the rest of its employees, betting that overtime reduces productivity and leads to burnout. At the same time, Google regularly conducts training and professional development of personnel, encouraging personal and professional growth. Another feature is healthy relationships in the team: there is even a position of a manager responsible for resolving conflicts.
3. Facebook – The company's goal is to provide every employee with a comfortable workplace. Therefore, all offices have relaxation areas where you can take a break from stress. The corporate culture is built on equality and openness, thanks to which newcomers quickly join the team and receive the necessary help from colleagues. This principle can be traced even in the organization of space, due to which there are no separate offices and partitions in offices, which facilitates and simplifies the interaction of employees;
4. Starbucks – the organization considers the main secret of its success to be the people who work in it, and therefore, it values all employees, calling them partners. Much attention is paid to the microclimate in the team of each coffee shop and the motivation of everyone who works there. Thanks to this policy, every employee, from intern to top manager, feels like part of a large team that makes the world a better place every day;
5. Microsoft is a feature of the corporate culture in the company is constant learning, personal and professional growth and continuous development of employees. The company's work schedule is flexible, so everyone can choose the most productive working hours for themselves. Management is trying to minimize the number of time-consuming and energy-consuming work meetings, and most discussions are held via online conferencing or text messaging.

Types of corporate culture

Experts distinguish 4 main types of corporate culture of the company:

1. Hierarchical, when the company acts according to clearly established rules, relies on traditional values and a rigid vertical of power, and the areas of responsibility are divided between employees, each of whom performs the duties assigned to him, subordinate to his immediate management. The disadvantage of such a culture is high competition among the staff and the slow reaction of the entire enterprise to market changes. This type of corporate culture is used in large, long-standing companies operating in conservative areas of activity — finance, the oil industry, the automotive industry, etc.
2. Market, a type of corporate culture, where all actions of the organization and its employees are aimed at success and achievement of goals, which allows you to apply non-standard solutions, including redistribution of responsibility and violations of hierarchy, if necessary. Such enterprises develop quickly and adapt to any changes in the niche, but employees often overwork and are stressed due to high staff competition. If you do not pay attention to the microclimate in the team and the mental health of subordinates, you can face low motivation and "turnover" of personnel. An example of a market corporate culture is Amazon, Google, Microsoft, Rosatom, Yandex;
3. Clan, when a friendly, "family" atmosphere reigns at work, informal communication and relatively free expression of one's own opinion are encouraged. There is no rigid leadership and strict systems of fines and punishments, and loyalty and trust are the basis of the relationship between management and subordinates. At the same time, the entire staff is united by common corporate values, goals and deeds. A possible disadvantage is that unscrupulous employees can enjoy a loyal attitude, and management does not always have enough authority to build a workflow. Most often, such a culture is present in small companies and startups, or is formed within certain departments and branches. Examples among well-known companies are Honda, Samsung, the foreign Auchan chain;
4. Adhocracy, another type of corporate culture of an organization that encourages creativity, out-of-the-box, experimentation, and innovation. Employees or individual teams have a high level of freedom of action and behavior, while the lack of the expected result is not punished, but regarded as a new experience. There is no strict hierarchy in management, but the authority of the leader is higher than in the "family" clan culture. The main disadvantage of this type of corporate culture is the likelihood of unsuccessful decisions that can slow down the development of the company and bring losses. Only professionals with experience and a high degree of personal responsibility can work effectively in such conditions. Examples of companies in which adhocracy is present are Apple, VK, Sberbank, Tinkoff.

5 Tips to Create and Develop a Corporate Culture in an Organization

Here are some tips for creating and developing a corporate culture within an organization:

• Tip 1: Carefully evaluate the model of collective relationships. For example, in a young startup where people who know each other well work, the use of "you" will not take root, and in a large company, familiar communication between management and subordinates will be inappropriate;
• Tip 2: Regularly "test" the corporate culture, since not all traditions and values of the company will take root in the team. If joint events look formal and do not give pleasure to anyone, it will be more advisable to abandon them;
• Tip 3: Do not forget about subordination, since even the family corporate culture does not imply familiarity and fraternity, and the management must have authority and authority to organize business processes. It is important to find a balance between the independence of employees and strict control, which can be done by motivating and encouraging personal responsibility;
• Tip 4: Encourage honesty, because when employees cannot express personal opinions and flatter management only for bonuses and incentives, the development of the company will be slow, and the only motivation will be money. Ensure that the policy of honesty and openness is observed at all levels of management;
• Tip 5: Focus on the interests of people, because corporate culture is, first of all, a comfortable environment for employees. Find out what their values are, what they would like the company to be, what would make their working life better.

Resume

The corporate culture of an organization is the most important part of the brand mentality. It forms a unified view of employees on the goals, mission and values of the company, creates a comfortable working environment for the entire staff and affects the flexibility of the business, helping it to quickly respond to changes and adapt to crisis situations. At the same time, it is important for the management to control the development of corporate culture, directing all its components in a productive direction.