8 Most Common Types of Workplace Cultures
Every workplace has a unique company culture that makes it stand out from the pack. Though each organizational culture is different, most company cultures fall into the same general categories. These are the most common types of workplace culture you need to be aware of.
1. Adhocracy Culture
2. Clan Culture
3. Customer-Focused Culture
4. Hierarchy Culture
5. Market-Driven Culture
6. Purpose-Driven Culture
7. Innovative Culture
8. Creative Culture
1. Adhocracy Culture
Adhocracy culture focuses on innovation and isn’t afraid to take risks.
What It Looks Like
Team members challenge the status quo and constantly find ways to improve, innovate, and develop new services and offerings.
Companies That Practice It
Most start-up and tech companies have this type of culture so they can create without too many barriers and be the first to market. This type of culture is usually high-energy and agile. Currently, Google, Facebook, and Apple all thrive with adhocracy values. They’re constantly innovating and trying new things to push the bounds of the market as it is.
The Main Goal of Adhocracy
Innovation and growth are the main goals for adhocracy cultures. And the faster the growth is, the better.
Pros
Adhocracies encourage constant innovation that makes the company stand out from others in the same market.
Cons
The constant innovation makes it hard to focus on one thing at a time. It can be too fast-paced for some employees.
Is Your Company an Adhocracy?
If your employees constantly find ways to improve services or roll out new offerings, you have an adhocracy.
2. Clan Culture
Clan cultures occur in companies where staff members function more like a family. These types of company cultures are most common in small, family-owned businesses.
What It Looks Like
Clan culture tends to get rid of hierarchies and creates a more supportive work environment where employees are just as involved and valued as upper management. They are likely to use open and informal communication. What you won’t find here is a high number of management levels, as employees are seen as peers and family.
Companies That Practice It
Smaller companies like Tom’s of Maine, Redmond (Real Salt), and Chobani all have clan cultures that prioritize their employees.
The Main Goal of Clan Culture
Clan cultures function more in terms of equality rather than seniority or hierarchical roles. This facilitates better collaboration and can, for some employees, make work a more welcoming experience.
Pros
Employees are more likely to provide open and honest feedback to management. It also creates stronger relationships among coworkers.
Cons
The clan culture can make the workplace more relaxed, encouraging employees to be a bit too relaxed for business.
Is Your Company a Clan?
The best way to tell if your company has a clan culture is to look at the relationships among coworkers and managers. If everyone feels like part of a family and is comfortable with one another, you likely have a clan culture.
3. Customer-Focused Culture
Customer-focused cultures put the customer experience first.
What It Looks Like
They thrive on providing the best customer service possible and are always willing to go to the next level to keep customers happy. Employees are motivated by making every customer experience a positive one.
Companies That Practice It Currently
Companies like Zappos, Whole Foods, Southwest, and REI have customer-focused cultures.
The Main Goal of Customer-Focused Cultures
The primary purpose of customer-focused cultures is to give employees the tools and autonomy they need to put the customer first at all times. In doing so, they create customer loyalty that makes the company successful.
Pros
Letting employees make decisions and do what’s necessary to make people happy creates a sense of pride in their work.
Cons
Since customers are the focus, employees can often feel neglected or less important in these environments.
Is Your Company Customer-Focused?
If you give your team the tools and independence they need to address customer concerns with ease, you likely have a customer-focused corporate culture.
4. Hierarchy Culture
Hierarchy cultures are the most traditional workplaces. They rely on a structure of upper managers, supervisors, and employees at various ranks with appropriate responsibilities.
What It Looks Like
Hierarchy cultures can be risk-averse and focus on preventing mistakes, sticking to rules and tradition, and managing failure. High-risk organizations like those in the oil and gas, finance, healthcare, and government industries often have hierarchy cultures.
Companies That Operate with a Hierarchy Culture
Financial institutions like Wells Fargo and Goldman Sachs, health insurance companies like Blue Cross Blue Shield, and oil and gas companies like Chevron and Shell have a hierarchy culture.
The Main Purpose of Hierarchy Cultures
Hierarchies are often in place to help make the company more organized. Everything and everyone has a clear role and purpose.
Pros
The organization makes hierarchies one of the most efficient types of corporate culture.
Cons
Hierarchies leave little room for flexibility. For some employees, the culture can feel too stodgy and old-fashioned.
How to Tell If Your Culture Is a Hierarchy
If you rely on clear structures and managerial roles, your organizational culture is likely a hierarchical culture.
5. Market-Driven Culture
A market-driven culture focuses on getting to market. This type of culture is results-oriented, hard-working, demanding, and highly competitive.
What It Looks Like
Companies with market-driven cultures may focus less on employee experience and satisfaction and more on performance and results.
Companies That Use a Market-Driven Culture
Tesla, Amazon, and General Electric have this type of culture.
The Main Purpose of the Culture
Getting products on the market is what drives these companies, and the faster it can happen, the better. In this type of corporate culture, a company’s business goals determine its culture, which is of secondary importance.
Pros
That constant innovation means companies can release new products quickly and outpace the competition.
Cons
This constant push to create new products can make market-driven cultures one of the types of company culture that’s the most prone to burnout.
How to Tell If Your Company Is Market-Driven
If you’re always racing to develop new products and put them out into the market regardless of how much work your employees take on, you may have a market-driven culture.
6. Purpose-Driven Culture
These cultures are driven by—you guessed it—a strong purpose.
What It Looks Like
Their culture is built on a defined, shared reason for being, and they attract employees, customers, and partners who share those ideals.
These cultures prioritize giving back to the community over making a straight profit each day.
Companies That Have Purpose-Driven Cultures
Companies like REI, TOMS Shoes, Cotopaxi, and Thrive Market are all purpose-driven. They routinely donate time and money to charities and help make local communities stronger.
The Main Purpose of the Culture
Giving back is always the goal. This means companies tend to divert part of their profits to charities they deem important.
Pros
The ability to give back to the community makes these types of workplace cultures desirable for prospective employees and increases the likelihood of high retention rates.
Cons
Companies with this culture prioritize giving back over straight profit margins. They tend to make less money than they otherwise could.
How to Tell If Your Company Is Purpose-Driven
If you strive to give back to the community and find ways to share your company’s wealth and resources with others, you likely have a purpose-driven company.
7. Innovative Culture
Innovative cultures focus on constantly coming up with the latest and greatest ideas to improve processes and offer services that meet consumers’ current and unanticipated needs.
What It Looks Like
Companies that embody innovative cultures are constantly looking for ways to build on existing technology and create new solutions. Conventional thoughts and methods get pushed to the side each day in favor of new ideas.
Companies That Use Innovative Culture
Disney Imagineering, Pixar, and Tempur-Pedic all embrace innovative cultures.
The Main Purpose
The purpose of these types of workplace cultures is to constantly come up with new ideas and improvements that benefit the lives of the company’s main consumers.
Pros
Innovative cultures give employees the freedom to experiment and find solutions that others might consider too obscure or inefficient.
Cons
The constant push for new ideas can leave employees dealing with burnout.
How to Tell If Your Company Is Innovative
If your company constantly pushes the boundaries of the status quo in favor of finding new ways to get things done, you have said goodbye to traditional organizational culture in favor of an innovative culture.
8. Creative Culture
Creative cultures focus on creating new products, stories, and services every day.
What It Looks Like
Creative cultures focus on the end goal and do what they can to bring those visions to life. Employees typically work together on teams and contribute ideas with the intention of providing the world with a new experience.
Companies That Use It
Companies like Disney Film, ABC, NBC, and CW that constantly produce new shows and major film companies like Paramount, Warner Bros., and HBO all embrace creative work culture.
The Main Purpose of Creative Cultures
Innovative ideas and stories are the main points of this culture. It’s not about individuals so much as coming together as a team to create something people will love.
Pros
Employees are encouraged to work together and enhance each other’s creativity every step of the way. This allows for stronger relationships and reduces downtime on the job.
Cons
The demand for creativity can put added pressure on staff and leave them worried about falling short of expectations.
How to Tell If Your Company Has a Creative Culture
You have a creative culture if you’re constantly trying to produce new products, stories, or services that tell a tale and take your customers’ minds away from the cares and concerns of their lives.
Figure Out Your Company Culture
These are just a few of the types of workplace culture. Get data about how your company culture works with a culture assessment from O.C. Tanner.
More Employee Recognition Resources
There are so many different ways to recognize, appreciate, and celebrate your employees. Here are more resources for guidance:
• Guide to Employee Recognition Programs
• 11 Employee Recognition Ideas
• 22 Awesome Employee Recognition Gift Ideas
• 9 Tips for How to Choose Employee Recognition Software
• Heartfelt Employee Appreciation Quotes to Say "Thank You"
• Benefits of Peer to Peer Recognition
• Best Practices for Virtual Employee Recognition
• Guide to Years of Service Awards
• Tips to Celebrate Work Anniversaries
• Employee Recognition in the Modern Workplace
• Victories: Modern Recognition Software
