An HR Glossary for HR Terms

Organizational Culture

What is Organizational Culture?

Organizational or corporate culture consists of all beliefs, values, and attitudes that an organization has established to frame their employee’s behavior, including the company’s management. Organizational culture is critical for employees to recognize and differentiate one organization from another. 

What are some qualities of a great organizational culture? (The PLAT Approach)

An exceptional organizational culture has numerous qualities that maintain and enhance its unique essence. Within this context, the PLAT approach illuminates the characteristics of an excellent organizational culture. Here’s the PLAT approach:

  1. Performance: Employees' performance will motivate others to foster a similar culture of achievement within the organization. 
  2. Leadership: Great examples can shape the future of the new generation of employees. Consequently, organizations renowned for their exceptional culture often boast well-established leadership programs.
  3. Adaptability: The world is evolving rapidly, and organizations must keep up with the rapid changes in each industry. Organizations that prioritize adaptability to the ever-changing world can nurture a great culture.
  4. Teamwork: Companies with an established culture have employees who are also team players. Teamwork promotes collaboration, a sense of belonging, and shared dedication to the company and team members. 

What are some types of organizational culture?

There are four distinct types of organizational culture that define the through culture. The four are listed as clan, adhocracy, hierarchy, and market. Here’s a detailed explanation of these different types:

  1. Clan (Family) Culture: As the name points out, clan organizational culture has a more family-like approach. In this type of culture, the importance is placed on employees' thorough morale, collaboration and teamwork. One of the most known examples of clan culture is Google.
  2. Adhocracy Culture: Adhocracy culture is known for its dynamic nature. Employees in this culture are encouraged to be agile and risk-takers. California-based technology company Apple is an excellent example of this type of culture.
  3. Hierarchy Culture: Like the name of the culture states, hierarchy culture emphasizes the explicit rules and structures within the company. In this culture, employees are expected to follow the rules and procedures. IBM, also named Big Blue, is recognized for its well-established hierarchical structure.
  4. Market Culture: Market culture is driven by goals and competition with other companies. It affirms achieving goals, results, and goals. Employees in this culture are motivated, goal-driven, and performance-oriented. Amazon exhibits a market culture with an immense center on competitive spirit and customer satisfaction.

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