Types of business culture

If you’re wanting to drive your business forward, building a strong company culture is a necessity – and getting it wrong can be a very expensive mistake. And many businesses have come to realise this after being faced with serious issues with employee retention, productivity and engagement. In this post, you can read about four types of business culture.

Clan culture
Leaders of clan cultures are hugely respected and are often perceived as mentors or father figures. These leaders drive team building, employee involvement and empowerment. Business goals and company values are commonly shared by employees across the organisation, resulting in one streamlined universal vision and employees who are invested in the company’s mission.

By coming into a business that boldly demonstrates a clan culture, employees enjoy a harmonious and tranquil working environment and are given the trust and freedom they need to thrive in their roles. This type of culture is typically more common among start-ups as it helps to establish a collaborative mindset where all ideas are welcome.

But, adopting a clan culture has its risks. By encouraging a social and fun environment you’ll be running the risk of losing the work/fun balance and the office lacking authority. Additionally, you could be handing your staff an open opportunity to slack and become disengaged in their roles if you provide them with too much freedom. Monitoring is key in order to fully reap the benefits of clan culture.

Adhocracy culture
The office environment is very creative, energetic and fast-paced. Leaders of an adhocracy culture are true entrepreneurs; they consistently encourage risks to be taken and push employees to experiment with new ideas. Adapting quickly to changing conditions is the norm in an adhocracy culture so that the latest trends are reacted to and concentrated on.

But, working in an intense and fast-paced environment can take its toll. Employees may find the atmosphere in the office chaotic and disorganised and they may struggle to clearly understand their responsibilities. And, with innovation and risk-taking coming first, the health of the business can face a direct financial impact too if brave experimentations don’t quite go to plan.

Market culture