Understanding Corporate Culture

By Cindy Hardy
Industrial Psychologist
www.cognit.co.za

We have all heard of the term corporate culture. What is it and why is it important to job seekers and employers.....

Corporate Culture is an observable, powerful force in any organisation. It is made up of its members' shared values, beliefs, symbols and behaviours. The organisations culture guides individual decisions and actions at the unconscious level. As a result, this culture within an organisation can have a potent effect on a company's well being and success. Some consider company culture to be the glue that holds everyone together while others compare it to a compass providing direction. Operating largely outside our awareness, corporate culture creates a common ground for team work and reduces uncertainty by offering a language for interpreting events and issues. Company culture, effectively provides a sense of order and contributes to a sense of continuity and unity.

No corporate culture type is better than another. The value is in understanding an organisation or team culture and how this culture can support the business strategy and goals. Organisations can harness the strengths of their company culture to promote continued drive towards business success and review elements of culture they believe necessary to adapt should the organisation be going through change strategies or into a different phase of the organisational cycle.

A company usually contains a number of subcultures and you may find that one area or department of the business is different to another. While this is so, there is usually a dominant culture that forms the basis for the overall corporate culture. Subcultures or even differing cultures to the dominant company culture is not a negative aspect. It allows organisations to perform effectively in different environments based on function, product, market, location etc.

So why do employers look at culture fit? If Corporate Culture drives perceptions, attitudes and behaviours, it stands to reason that this culture also drives business results. Organisations look for prospective employees who will fit into the dominant culture and who may add to the subculture and therefore add to the business results and bottom line. In this way they are more assured of the 'match'. Skills can be acquired, but changing someone's perceptions attitudes and behaviours is not that easy. Consequently the culture fit becomes the more significant issue during the selection process.

Many people can attest to the importance of company culture fit. Someone can fulfil exactly the same job or function within two different organisations. While on the one hand, really enjoy the job content and experience in one organisation and yet on the other, feel unfulfilled and de-motivated in another organisation.

We have described some of the more dominant and subculture types so that you may assess where you think you would fit in best and make the most of your skills while being satisfied with your working environment.

Dominant cultures may include:

- Clan culture; an open and friendly place to work where people share a lot of themselves. It is like an extended family. Leaders are considered to be mentors or even parental figures. Group loyalty and a sense of tradition are strong. There is an emphasis on long term benefits of development and great importance is given to group cohesion. There is a strong concern for people and the organization places a premium on teamwork, participation and consensus

- Adhocracy culture; a dynamic, entrepreneurial and creative place to work. Innovation and risk-taking are embraced. A commitment to experimentation and thinking differently are what unify the organization. They strive to be on the leading edge. Long term emphasis is on growth and acquiring new resources. Success means gaining unique and new products or services. Being an industry leader is important. Individual initiatives and freedom are encouraged.

- Hierarchy culture; a highly structured and formal place to work. Rules and procedures govern behaviour. Leaders strive to be good coordinators and organizers who are efficiency minded. Running a smooth operation is critical and formal policy is what holds the group together. Stability, performance and efficient operations are the long term goals. Success means dependable delivery, smooth scheduling and low cost. Management wants predictability.

- Market culture; a results-driven organization focused on job completion. People are competent and goal orientated. Leaders are demanding, hard-driving and productive. The emphasis is on winning which unites the group. Reputation and success are common concerns. Long-term focus is on competitive action and achievement of measurable goals and targets. Success means market share and penetration. Competitive pricing and market leadership are important.

Sub cultures within these may include:

- Power culture - emanates from centralized power. Power cultures are demanding of people. Generally motivation is not a problem as expectations are clear and loyalty is recognized and rewarded. Politics may come into play they may move slowly given the central decision-making.

- Role culture - this is a highly structured environment where clear objectives, goals and procedures exist. Employees are judged almost solely on how well they meet these objectives and goals. The culture rewards dependability and consistency. Change may come very slowly.

- Achievement culture - people work hard to achieve goals and better the group as a whole. The culture consists of highly motivated people who need little supervision. Rules and procedures are limited and the best procedure is used. The environment is highly adaptive.

- Support culture - this acts like a tiny community where people support and trust each other. Members of this culture will cooperate, make sure everyone is together on an idea and they will do all they can to resolve conflict. This culture supports good communication and excellent service both internally and externally. It is a nurturing environment where people like to spend time together, both professionally and personally.

Job Seekers and Employers alike should attempt to understand their culture preference. By understanding corporate culture, Job Seekers are empowered to seek opportunities and work environments that empower them to deliver at the top end. A good culture fit makes for a great work environment and ultimate job satisfaction across the board.