What Is Corporate Culture?
Corporate Culture also called Business or organizational culture is a term that describes the combination of attitudes, behaviors, mission, values and expectations that move an organization’s leaders and employees on a daily basis. In other words, culture goes far beyond written institutional norms, influencing the actions carried out by the company’s team.
In other words, it is useless to have rules present only on the website or in institutional material.
In order for them to be part of the corporate culture, they must guide the attitude and beliefs of individuals.
How Is An Organization’s Culture Born?
According to scholars on the subject, culture is born from the principles, beliefs and values of the company’s founders and main leaders .
As mentioned by Professor Jaime Crozatti, in his article “ Management model and organizational culture: concepts and interactions ”:
“As definers of the management model, as they hold the maximum power in the company, [founders and leaders] impose their personal convictions, their own way of making things happen.”
So, the premise of leading by example is taken to the maximum level when it comes to corporate culture.
In addition to managers in higher positions, the author describes 5 other elements that influence the formation of organizational culture:
- Community : influences the company’s culture by interacting, providing and acquiring the economic resources necessary for the company to function
- Customer : can change the culture based on their expectations regarding the quality of products and service
- Organization size : impacts the culture in terms of delegation of power and responsibilities
- Legal nature of the owner : the fact that the company is public or private determines the levels of corporatism and the requirement for effectiveness
- Technological aspects : represent the materialization of some values regarding time, quality, employability , dimensioning of activities, etc.
What Is The Difference Between Corporate Culture And Organizational Climate?
The concepts are related but have differences.
To begin with, by the definition itself.
While culture refers to the way things are done within the company , climate refers to the impression that employees have at a given moment.
That is, the culture may undergo little or no change for long periods, however, the organizational climate may vary within the same day.
And the reason is simple.
The climate depends on volatile factors , defining the level of satisfaction of one or more employees at that moment.
Consequently, it is influenced by mood, interpersonal relationships, conflicts, recent layoffs, insecurity, accumulation of functions, among other variables.
How Important Is Corporate Culture To An Organization?
When there is no strong corporate culture, managers and teams are left without direction.
Although there are always informal standards passed on among employees, the feeling that remains is uncertainty about what should or should not be done , and for what purpose.
There remains a doubt about the mission and values that guide the company, which jeopardizes productivity and good coexistence at work.
Without certainty about internal and external policies , employees tend to adapt processes as they see fit, without a parameter or consistency in their actions.
The environment is also likely to become disorganized due to the lack of solid standards, making the communication and experience of customers and employees different with each interaction.
Thus, it is difficult to achieve assumptions such as continuous improvement or customer success , as they can be served attentively by one employee, and with indifference by another, for example.
The 4 Types Of Business Culture
There are several different formats to classify the types of corporate culture, considering the perspective of people management , hierarchy and structure , among others.
To simplify this analysis, we chose the view of one of the pioneers on the subject, researcher Charles Handy .
In 1976, Handy launched the work “ How to Understand Organizations ”, spreading his division of these entities into four types of culture, based on the channels of power they have.
Discover the modalities below.
1. Culture Of Power
It is characterized by the centralization and concentration of power in the hands of the founder or CEO, who acts as if he were in the middle of a web.
From his privileged vision, the leader moves each department of the company.
2. Paper Culture
As the name suggests, it refers to a culture guided by bureaucracy, in which rigid rules and processes that value rationality prevail.
3. Task Culture
It corresponds to a more flexible culture, focused on projects and results and that admits great influence on the part of the teams responsible for the work.
In a modern version, it can refer to horizontal environments, where there is no hierarchy, and even to innovative structures such as the startup business model .
4. Culture Of The Person
It prioritizes the well-being and development of employees ‘ talents , seen as essential for the organization’s success.
Benefits, career plans and incentives for studies are outstanding characteristics within companies that adopt this type of culture.
Components Of Corporate Culture
As we explained above, the elements of organizational culture set the tone for relationships and routine within the company .
Once again, there are different reference studies that talk about these components, so we will base ourselves on the article “Management model and organizational culture: concepts and interactions”, by Jaime Crozatti.
According to the text, there are six elements that characterize the culture of an organization.
Beliefs
To understand the meaning of beliefs within a company, it is important to remember that it is made up of human beings and, as such, reflects aspects of human life .
So much so that, even when they belong to an organization, beliefs are defined as truths conceived or accepted by employees.
They are created on a daily basis, when behaviors are observed as this group lives.
Values
It’s the values that indicate the importance of things within the company, including what your priorities are and what doesn’t make much difference.
Therefore, a simple way to identify the values of a team is to note how it occupies itself during the workday.
Mores
They are attitudes that result from the materialization of beliefs and values .
In other words, customs reveal what really matters to employees and leaders.
Rites
These are the activities that make up the routine , what is necessary for the company to function and complete the work it proposes to do.
Ceremonies
They describe group meetings , whether formal, such as performance appraisal meetings , or informal, such as a joint coffee break.
Ceremonies are also the fruit of values, beliefs and customs, and can be used to reaffirm or modify each of them.
Informal Communication Network
It is the name given to day-to-day communication , generally made by workers in the absence of managers.
Popularly known as “radio pawn”, the informal communication network reveals the strength of the corporate culture, showing positive and negative points in the eyes of employees.
How Is A Company’s Culture Modeled?
“The experiences lived by people in the daily work in companies are surrounded by myths, rituals, values and heroes, each of which performs its function, participates and organizes the relationships between individuals, conferring meaning (that is, a set of signs, signifiers- meanings and symbolism) and serving for communication.”
These experiences complement common values, beliefs and rituals, consolidating or modifying each of them according to the need and autonomy that employees have.
In other words, organizational culture is not something static ; it can be transformed by the actions of your human resources .
Therefore, it is necessary to include myths and heroes, reinforcing a positive impression about the organization and what motivates its existence.
Myths usually start from solutions that have resulted in positive results for the company and guide the company’s collective imagination, encouraging the adoption of certain standards and processes .
The heroes, on the other hand, are the central characters who achieved a significant victory for the company, being taken as a model of action by the other employees.
When there is strong identification among employees and values, myths and heroes, culture is reinforced within the organization.
Corporate Culture: How To Implement It In 4 Steps
By this point in the text, you are probably rethinking your corporate culture and the impacts it has on the organization.
It is worth noting that, even in companies that have never discussed this topic in depth, there is a valid day-to-day culture , but it can be weak, unequal and decentralized.
This means, for example, that the standards adopted at the head office are not the same as at the branches, that different departments have built their own customs and, possibly, customers perceive a mismatch in interactions with the company.
It can also imply widespread dissatisfaction among employees, as bad habits end up being tolerated due to the absence of strong regiments and leadership .
In this way, treatment, punishments and benefits end up being unequal, causing a feeling of injustice on the part of the team, and impunity among privileged people.
Whatever the scenario that aroused the desire to change and implement a strong culture, keep in mind that transformation is possible , as long as the leaders are willing to adapt the components of the corporate culture.
Sound complicated?
So, let’s simplify this trajectory, suggesting the adoption of four steps inspired by this content – signed by the angel investor and president of the investment boutique G2 Capital, Camila Farani.
Step 1 – Find Your Company Values
What values do you want to build upon in your company?
If you value an honest conduct, choose ethics as a value.
If you want quality in relationships, products and services, add professionalism.
Do this exercise and list the key elements that the company should prioritize and that will be institutionalized.
Then, hold a meeting with a strategic team that will be the bearer of these values, taking responsibility for sharing them with other employees.
If your company is small , invite everyone to this meeting.
If you have many collaborators, call only those who already have a posture consistent with one or more of the defined elements.
Note that the criteria for selecting who will be present does not take into account the position or position that people have in the organization, but the way they usually behave.
Step 2 – Convey Your Values
As Camila says, “the values of culture are the fabric between your company and the world”.
Therefore, they deserve to be highlighted in each meeting room, event, presentation, channel and material used for the company’s communication , whether internally or externally.
This is the way for employees and customers to understand, absorb and start to relate the values to the company, reacting according to these premises.
Step 3 – Encourage Good Practices
Considering that culture is the company’s character, it is essential to reward actions that support the institution’s values.
In this sense, do a scan to evaluate the events that are already happening in the company, both formal and informal, and create programs to reinforce those that are in line with priorities.
If the organization values continuous learning and there is a group that meets to improve English, how about enhancing this experience with a private teacher or classes at a language school?
Step 4 – Monitor And Improve The Culture
As important as knowing your target audience is knowing your employees .
So don’t forget to monitor their perception of the company, just as you monitor customer satisfaction.
There is no need to resort to fancy tools to do this.
Most of the time, periodic (and anonymous) surveys, combined with lunch or coffee with employees, are enough to gather important data as feedback .
Whenever you identify negative trends, ask what can be done to improve the picture and designate one or more responsible for the actions.
Corporate Culture: 3 Examples Of Success
Now that you know the main steps to build and implement your business culture, check out examples of organizations that have done well to strengthen theirs.
Spotify
Anyone who has experienced the main streaming of music has certainly noticed factors such as simplicity in communication , valuing people and flexibility to adapt services – the result of a DNA focused on innovation.
However, one cannot imagine the challenges that influenced the construction of this culture .
After choosing the agile methodology to structure the company, the employees noticed that some principles did not make much sense, and decided to forge their own manifesto and rules.
Fundamentals such as servant leadership – always ready to listen and include those being led –, trust and sincerity allowed the teams the freedom to present differentiated solutions, without fear of being blamed if they didn’t work out.
After all, both work and responsibility are assumed by the entire team, who learn from mistakes to improve next time.
Blue Account
Brazilian platform focused on the integrated management of companies, ContaAzul has a culture based on customer achievement and experience .
It all starts with valuing the startup’s human capital, which works in a horizontal management model, in which everyone has space to express opinions and implement changes.
That’s how the team broke with the standard of service via call center, with rigid and mechanized processes, to adhere to a format of consumer delight , encompassing customization and proximity.
A job at the tech giant is a dream for many, thanks to a culture that adds clarity and uses data to assess and adjust the environment.
Google uses its expertise in data intelligence to enrich its processes for analyzing employee culture, satisfaction and performance, with a strong incentive for innovation .
The workplace is designed not only to enhance productivity and new ideas, but also to promote well-being and quality of life among employees.
