Which Organizational Culture is the Right Fit for Your Company?
, by Ed Stone, 12 min reading time
, by Ed Stone, 12 min reading time
For manual labor jobs, organizational culture is often overlooked. Although industrial workers may not have the same goals as those working office jobs, it is still important to engage these workers to ensure they feel motivated and respected. Why? Because these employees are the foundation of many businesses. From construction to agriculture, working class employees play an instrumental role that significantly impacts the overall success of many corporations. Having a strong team of industrial workers will not only enhance the company’s productivity, but also its efficiency in the long run.
Your company’s culture determines what type of job applicants will be attracted to your company, so it is important you are fostering a positive culture among all employees within your organization to attract the best talent possible. So how do you establish a strong company culture? You must first understand what the dimensions of company culture are, as well as the 4 types of organizational cultures seen most often in today’s world.
To better understand the dimensions of company culture it is helpful to reference Hofstede’s Cultural Dimensions, which compares and contrasts the variants in cultures seen across over 50 countries. Based on this framework, company cultures are influenced by these six cultural dimensions:
With these dimensions in mind, you can analyze the following company cultures accordingly to determine what type of organizational culture your business falls within. Remember that there is no “right” or “wrong” within these dimensions. They simply point to the different underlying values within an organization.
Based on research done by Robert Quinn and Kim Cameron at the University of Michigan, there are four basic types of organizational culture. Each of these cultures have competing values and unique attributes, resulting in different benefits and drawbacks.
Let’s explore these types and learn how you can implement the one that’s right for your company.
The first type of culture is called “clan culture.” Clans are defined as close-knit groups of families. Consequently, clan culture is the most family-like in the way it values teamwork, mentorship, and collaboration. There is less distance between higher-ups and employees, allowing each employee's contribution to be heard and valued. It’s also known for its flexibility.
Here are the pros and cons of clan culture:
You’ll often find clan cultures in smaller companies, especially startups. Tom’s of Maine is a clan culture company that’s found lasting success while maintaining their values of collaboration, compassion, and a positive work environment. An understanding of how to create a positive work environment is essential to clan cultures, as these employees rely on the support of their leaders and fellow team members.
If you’re managing a startup or small company, this type of culture may appeal to you. To implement a clan culture, simply start by encouraging communication with your employees. Allow them to contribute their ideas and feedback. Emphasize team building activities and make sure each employee feels valued and empowered in the company.
Innovation is the defining feature of adhocracy cultures. Through risk-taking and creativity, adhocracy cultures operate on the cutting-edge. Employees are encouraged to cultivate their creativity in a variety of ways to fuel further innovation. Succeeding in the market is of paramount importance, so these types of companies are always closely monitoring market trends and patterns to strengthen their decision-making processes.
Here are the pros and cons of this work culture:
Adhocracy Organizational Culture Examples:
Some famous adhocracy style companies are leading tech innovators, like Google and Facebook. Any company that must consistently innovate to stay in business is a good fit for an adhocracy culture.
How To Implement an Adhocracy Culture
If you are an entrepreneurial type, this culture may be perfect for your business. To promote an adhocracy culture in your company, start with the following steps:
Market culture is ruthlessly results-oriented. In turn, it’s the most aggressive of the four types. Market culture companies are characterized by a greater distance between management and employees. Employees are rewarded or punished based on their performance and compete to win. While all industries can follow any type of organizational culture, industrial workers usually fall within the competitive culture category. In these types of jobs, there is a clear distinction between the different levels of management and employees are expected to have a certain level of performance on a daily basis. Even though this style of organizational culture is more rigid than the rest, employers are still expected to create a positive working environment that encourages all employees to work towards a common goal.
Here are the pros and cons of this competitive culture:
Market Organizational Culture Examples:
You can spot a market culture company by its hyperfocus on achievement benchmarks. For example, quotas and KPIs are commonly used in these companies to measure success. Due to the emphasis on achievement, market culture companies often become industry powerhouses, like Amazon and General Electric.
To promote a market culture, start by defining your company's goals and setting benchmarks to achieve them. Incentivize your employees to reach their numbers. Promote an attitude that you’re competing in the market to win and hire people who share this same level of ambition.
Hierarchy culture values efficiency, stability, and control. As its name suggests, the hierarchy of leadership is respected in this culture. Management is clearly defined. These companies focus on doing things the “right way,” resulting in formalized procedures and protocols. In turn, they are characterized by predictability, uniformity, and consistency.
The pros and cons of this culture are:
Hierarchy Organizational Culture Examples:
Traditional bureaucratic organizations usually use a hierarchy structure. Government agencies, like the Department of Motor Vehicles and the military, are great examples.
To establish a hierarchy culture at your company, start by clearly defining the hierarchy of leadership. Next, dial in your day-to-day processes and norms. Be detail-oriented and define specific protocols that must be adhered to. Focus on efficiency. Hire people who are willing to respect the chain of command and value stability themselves.
As you can see, company cultures can differ drastically. All types of organizational cultures have strengths, but the right culture for your company depends on your goals and core values. Cultivating your company culture takes time and won’t happen overnight. However, with a vision and consistent implementation effort, organizational change is totally possible.
Regardless of which overall organizational structure your company fits into, one cohesive factor is that companies need to value their employees. One study found that 78% of workers quit because of lack of engagement, career advancement, or other factors that are considered regrettable turnover. Now this isn’t just for office workers, this goes for everyone. These results show that regardless of what organizational culture you choose to follow, the important thing to do is to make sure your employees feel valued above all else. Once you are able to establish a healthy, supportive, and positive working environment, you can then tailor your vision to focus on specific goals and your organizational structure. But remember, every company is different, which means you have to find what works best for you and your team.
When revamping your organizational culture, think about the offerings that your employees will benefit most from. Should you implement incentives? Do you value innovative and creative thinkers? Whether your employees are working on an assembly line or are in an office building, it’s important that you are meeting their needs so they can perform their job to the best of their abilities.
A great way to bolster company culture for industrial workers is by showing you prioritize their health and safety. Boot World’s Corporate Footwear Program is a great example of a program that does just that. This program ensures superior protection for your employees’ feet by providing industry-leading men’s and women’s safety shoes including safety-toe and non-slip shoes. When you consider that 75% of all foot injuries at work happened because workers wore improper footwear, you realize the important role footwear plays in many industrial jobs. By proactively keeping your employees safe you are not only avoiding unnecessary costs associated with workers' compensation, but you are ensuring your employees feel valued and are contributing towards a strong company culture.
Ed Stone brings over 45 years of footwear knowledge and passion to his role as President of Boot World, a family-owned company and an industry leader in safety and occupational footwear. A second generation "shoe dog” Ed's footwear knowledge is unparalleled, serving as an informal advisor for some of the worlds largest footwear brands including Wolverine, Timberland PRO, and Reebok Works.
A lifelong Southern California resident, and ardent conservationist, Ed enjoys hiking and open water swimming.