Types of organizational culture and its impacts


Defining types of organizational culture

Organisational culture refers to the shared values, beliefs, attitudes, customs, and practices that characterise an organisation. It is the unwritten code of conduct that drives an organisation’s behaviour and shapes its identity. Organisational culture may be defined as a set of assumptions and norms that influence how people perceive their roles within an organisation. The way employees interact with one another, the way they communicate, the level of trust among them all contribute to organisational culture.

Several models have been developed to conceptualise organisational culture. One such model is Deal and Kennedy’s cultural model comprising four types of cultures – work hard/play hard, tough guy/macho, process-oriented and bet-your-company cultures. Another well-known model is Schein’s cultural model which describes three levels of organisational culture- artefacts (visible manifestations), espoused values (stated beliefs), and basic assumptions (unconscious beliefs). These models help in understanding how different organisations build their unique identities based on their core values.

The definition of culture can be broadly understood as a collection of shared values and behaviours that reflect how organisations operate or behave towards internal stakeholders such as employees or external stakeholders like customers or shareholders. Understanding these dynamics is critical for leaders seeking to create a healthy work environment, strong organizational behaviors and a desired culture where ideas flourish and everyone feels valued.

Importance of culture

Organisation culture is the set of values, beliefs, behaviors, and attitudes that define an organisation’s character. A good organisational culture is essential for any company to succeed and grow. It provides a sense of identity and direction to employees, helps attract top talent, boosts productivity levels, and fosters innovation.

A healthy culture change can have a significant impact on employee morale and job satisfaction. Companies that invest in creating a positive workplace environment where employees feel valued tend to have lower turnover rates than those that do not. By providing a supportive work environment with clear communication channels, ongoing training opportunities, recognition programs and employee benefits packages companies can create an atmosphere of mutual respect.

Understanding the organisation culture meaning is crucial for businesses looking to foster growth and success. By creating a positive work environment where employees feel valued through investing in their personal development goals and recognizing their achievements companies can build loyalty amongst staff who are more likely to stay long-term resulting in better business outcomes across all areas of operations.

Impact on employee behavior and productivity

The impact of a strong culture on employee behaviour and productivity is significant. Good organisational culture models that foster transparency, collaboration, and mutual respect among employees lead to better individual and team performance. Employees in such cultures feel valued and supported, which motivates them to work hard and produce quality output.

On the other hand, bad organisational culture models that promote secrecy, poor communication, and lack of trust among employees adversely affect their behaviour and productivity. In such cultures, employees are demotivated as they feel undervalued or neglected by their employers. They may also indulge in unethical practices or sabotage the organisation’s goals out of frustration or resentment.

Therefore, organisations must proactively create a good organisational culture model that encourages positive employee behaviour and boosts productivity. This can be achieved by promoting open communication channels between management and staff members, creating an environment of inclusion where individuals feel safe to express themselves without fear of discrimination or retaliation, recognition programs for high performing employees as well as training programs aimed at developing a growth mindset culture throughout all levels within the organisation.

Characteristics of good or bad culture

In summary, the gap between the listed values of an organisation and its employee behaviours is the measurement of bad culture.

Good organisational culture is characterised by values that promote ethical behavior, teamwork, and open communication. In such a culture, there is mutual respect among employees, and they are treated fairly regardless of their position in the company. Leaders are transparent in their decision-making processes and take responsibility for their actions.

On the other hand, bad organisational culture is characterised by values that promote individualism over teamwork, a lack of accountability among leaders, and a fear-based work environment. In such a culture, employees feel undervalued, unappreciated and have limited opportunities to grow within the organisation. There may also be instances where unethical practices are tolerated or even encouraged.

There are different models of organisation culture such as Clan Culture model which represents an internal focus on socialization with flexibility in work environment while Adhocracy Culture model focuses on innovation with an external focus on competition and risk-taking environments. The hierarchy Culture model emphasises control through structure while Market Culture model emphasizes competitiveness with external focus towards customers’ needs.

Values, norms, beliefs, and practices

Organisation culture is made up of the shared values, norms, beliefs, and practices that define how a company operates. These elements are essential for creating an environment where employees feel a sense of belonging and purpose while also contributing to the success of the organisation. There are several models of organisation culture that companies can adopt to create a positive work environment.

The “Competing Values Framework” model categorises organisational cultures into four types: Clan, Adhocracy, Market and Hierarchy. The clan culture emphasises teamwork and collaboration with an emphasis on employee development. Adhocracy culture is characterised by innovation and creativity with an emphasis on risk-taking. Market culture prioritises competition and achievement oriented goals while hierarchy cultures value structure and control.

Another model worth noting is Edgar Schein’s “Cultural Onion” which illustrates how organisational culture has different levels – artefacts (visible symbols), espoused values (stated beliefs) underlying assumptions (unconscious beliefs). Understanding these layers helps organisations see what drives their behaviour in ways they may not have considered before. Ultimately, whichever model an organisation chooses to follow it should align with its vision, mission statement & long-term goals as well as nurture employees’ growth within it.


A model example for good organisational culture is the one created by Edgar Schein. This model consists of three levels: artefacts and behaviours, values and beliefs, and assumptions. At the surface level are artefacts and behaviours that can be easily observed such as dress code or office layout. The second level includes values and beliefs that guide decision-making within an organisation, such as prioritising teamwork over individual success. Lastly, assumptions are deeply ingrained ways of thinking that form the core of an organisation’s culture.

Another example includes approaches to improve employee satisfaction which in turn leads to customer satisfaction. They implement unique policies, allowing respectable exercise of creative freedom in their workspace. These policies have helped create a fun and positive work environment which translates into happy customers.

Good organisational culture models include those like Schein’s three-level model which emphasises underlying assumptions, while companies that improve employee satisfaction show how this focus can lead to a successful workplace culture. Both models demonstrate that creating a positive organisational culture requires attention to detail and consistent effort from leaders at all levels of an organisation.

A top driven approach – shaping organizational growth

Creating a positive organisation culture through a top-driven approach involves using change agents such as leadership to influence the values, beliefs, and behaviors of employees. This approach focuses on creating an environment where employees feel valued, respected, and empowered to contribute their best efforts towards achieving organizational goals. A positive organization culture is often linked to increased employee engagement, improved productivity, and enhanced customer satisfaction.

There are various organization culture models that leaders can use to create a positive workplace environment. The Schein Culture Model identifies three levels of organizational culture: artifacts (visible structures such as office layout), espoused values (shared beliefs about what is important), and basic underlying assumptions (taken for granted beliefs). By understanding these levels of organizational culture, leaders can work towards aligning them with the desired outcomes of the organization.

The Competing Values Framework model categorizes organizational cultures into four types: clan cultures (collaborative and flexible), adhocracy cultures (innovative and dynamic), market cultures (competitive and results-driven), and hierarchy cultures (structured and controlled). By identifying the dominant type of organizational culture within their workplace, leaders can leverage it towards achieving their desired outcomes while also addressing any negative aspects that may hinder progress.

Overall, creating a strong organizational culture and values through a top-driven approach requires commitment from leadership in terms of leading by example, time investment, communication, skills development as well as willingness to embrace change when needed.

Leadership, communication and diversity

Improving the culture of the organization involves incorporating leadership, communication, and diversity into the existing models. Fostering effective leadership is a critical aspect of creating a positive organisational culture as it sets the tone for how employees interact with each other and management. Leaders need to be approachable and set clear expectations while also being receptive to feedback from their team members.

Effective communication is also crucial in promoting healthy workplace culture. Encouraging transparent communication channels can improve collaboration among teams, build trust between employees and employers, thus leading to better productivity within the organisation.

Lastly, diversity plays an essential role in shaping new culture in a positive way. Encouraging diversity within the organisation creates a sense of belonging among all employees regardless of their backgrounds or experiences. Diversity allows for different perspectives to be shared which increases creativity and innovation within the workplace while fostering an inclusive environment that values every employee equally.


Transparency is a critical element in identifying and fixing organisational culture. It helps leaders to understand the existing culture models in their organisations, identify areas that require change and take action towards achieving desired outcomes. Transparency enables employees to share their feelings, thoughts and insights without fear of repercussion, which can help pinpoint where cultural problems lie.

Organisation culture models are essential in understanding the dynamics of an organisation’s cultural practices. These models provide a framework for examining how values, beliefs, behaviours and symbols interact with one another to create an organisation’s unique culture. By using these models alongside transparency initiatives such as employee surveys or open communication channels, leaders can identify areas where they need to improve or reinforce existing cultural practices.

The benefits of transparency in fixing organisational culture go beyond simply identifying problematic areas. It also helps build trust between management and employees while promoting accountability across the board. With transparency comes a willingness from all parties involved to be honest about issues within the company and work collaboratively towards solutions that benefit everyone involved.

Organizational culture transformation

Changing an existing culture in an organization can be a daunting task. One of the main reasons is that culture is deeply ingrained in people’s behaviors and beliefs. It takes time, effort, and patience to shift these established patterns of behavior. Leaders must be prepared to face resistance from employees who are comfortable with the current way of doing things.

Moreover, top-down approaches that force change on employees often fail because they do not involve buy-in from those affected by it. It is crucial to involve all stakeholders in the process of changing the organizational culture. This involves engaging with employees at all levels, understanding their perspectives, and addressing their concerns.

Furthermore, changing current culture requires consistent reinforcement over time. Culture is created through resilience. A one-time training or workshop will not suffice to transform deep-rooted behaviors and beliefs. It needs a continuous effort by leaders to reinforce new attitudes and values through training sessions, coaching, feedback mechanisms, and incentives for positive behavior changes. Ultimately it takes leadership commitment, dedication and persistence over a long period to bring about lasting change in organizational culture.

Corporate culture

Corporate culture refers to the values, beliefs, attitudes, and behaviors that define an organization and its employees. It is the shared understanding of what is important among members of a company, and it shapes how they interact with each other as well as with external stakeholders. A strong corporate or company culture can help attract top talent and retain employees by creating a sense of belonging and purpose.

Organizational values and culture are influenced by various factors such as leadership style, communication practices, rewards systems, and organizational structure. Leaders play a crucial role in shaping the culture because their actions have a significant impact on employee behavior. Effective communication practices such as transparency and open-door policies can foster trust between management and employees. Reward systems that recognize good performance can motivate employees to achieve better results while promoting a positive work environment.

Corporate culture also plays a vital role in driving business success. A company’s culture should promote diversity, respect its workforce, encourage innovation, foster collaboration across teams, and empower individuals to take ownership of their work goals while aligning them with those of the organization’s vision for growth or revenue generation.

Market culture

Market culture is one culture that places an emphasis on results and competitiveness. In this type of culture, the primary focus is on achieving measurable goals, increasing profits, and gaining market share. Employees in a market culture are expected to be driven by performance metrics, with little tolerance for underperformance.

A positive market culture is tied to customer satisfaction. Organizations with this aspect of culture would tend to be highly focused on meeting customer needs and preferences. This focus allows them to stay ahead of the competition by delivering superior products or services that meet customers’ expectations.

Another important aspect of market culture is one that emphasises innovation and growth. This is an important business strategy for those constantly looking for new ways to improve their products or services, expand into new markets, or find better ways to serve their customers. This focus on innovation helps them shape a positive path forward to stay competitive in an ever-changing business landscape.

The role of education

Education is one of the key ways to improve an organization’s culture. When employees are educated about the values and mission of their company, they are more likely to align their personal goals with those of the organisation. This alignment creates a positive work environment where everyone is working towards common goals and objectives.

One way to educate employees is through training programs that focus on leadership development, diversity and inclusion, communication skills, unconcious bias, and conflict resolution. These programs help employees understand how to work together effectively and create a culture that promotes collaboration rather than competition.

Another approach is to offer educational opportunities for employees outside of their specific job duties. This could include offering courses in areas such as wellness, stress management, or financial planning. By investing in the overall well-being of employees, organisations can create a more positive culture where people feel valued and supported.

Overall, education is an essential tool for improving organisational culture because it helps employees better understand their roles within the company and how they contribute to its success. By investing in employee education, organisations can create a positive workplace environment that benefits everyone involved.

Audit and assurance

Audit and assurance can be utilised to measure an organisation’s culture. The culture of an organisation is defined as the shared values, beliefs, attitudes, behaviors, assumptions, and practices that define how people behave in an organization. Culture plays a vital role in shaping employee behavior and driving business performance. Therefore, it is essential for organisations to understand their culture and make sure it aligns with their goals.

To measure the organisational culture through audit and assurance procedures, there are several factors that can be considered. For instance, auditors can examine the company’s mission statement, vision statement, values statements or code of conduct documents to see if they reflect the desired organisational values. They could also evaluate human resources policies such as recruitment processes or performance evaluation methods to assess whether they promote cultural alignment within the company.

Audit and assurance should also measure the difference between the documented standards of integrity and the actual behaviour of staff.

In conclusion, using audit and assurance procedures to measure organisational culture helps companies evaluate their internal environment effectively. It enables them to identify areas where improvements are needed concerning cultural alignment with their goals as well as potential risks associated with misalignment between behaviour patterns and organizational objectives. Overall this process assists organizations in developing effective strategies that foster stronger workplace cultures aligned with their strategic objectives which ultimately leads towards better business outcomes.


Resilience is the ability to bounce back from adversity or cope with challenges. When individuals within an organization possess resilience, it can positively impact organizational culture. Resilient employees are better able to handle stress and uncertainty, which can lead to a more supportive work environment. This type of environment promotes collaboration, communication, and problem-solving skills that can benefit the entire organization.

Additionally, resilient employees are more likely to take ownership of their work and responsibilities. Positive culture will develop when they tend to be self-motivated and have a positive attitude even in difficult situations. This attitude can create a domino effect within the workplace as others begin to adopt similar mindsets.

Finally, when an organization values resilience as a trait among its employees, it creates a culture where failure is viewed as an opportunity for growth rather than something negative. This mindset encourages innovation and creativity while reducing fear of taking risks. In turn, this leads to greater adaptability in the face of change and overall success for the organization.

Culture and success

Organisational culture is the shared values, beliefs, behaviours and attitudes that shape an organisation’s practices. A strong organisational culture tends to lead success by fostering a sense of belonging and purpose for employees, building trust with customers and stakeholders, and promoting innovation and agility.

One key aspect of organisational culture is based on leadership. Organizational leaders must  embody the desired values of the organisation can inspire employees to adopt those values as well. This can lead to a more engaged workforce that is motivated to achieve the organisation’s goals.

Another important factor in creating a positive organisational culture is communication. Clear communication channels that encourage transparency and feedback can foster trust between employees, management, customers and other stakeholders. This can also facilitate collaboration among teams and departments which leads to increased productivity.

Overall, an effective organisational culture is crucial to success because it creates a positive work environment where everyone feels valued for their contributions. When people are happy at work they tend to be more productive, innovative and better able to serve customers needs which ultimately leads to greater success for the organization as a whole.


In conclusion, organisation culture plays a crucial role in shaping the behavior, values and beliefs of employees. It can either promote or hinder productivity, employee engagement and job satisfaction. A positive organisational culture that aligns with the company’s goals and values can create a sense of purpose for employees. They become more committed to their work, which leads to higher retention rates.

On the other hand, an unhealthy organisational culture can lead to high-stress levels and burnout among employees. This can result in low morale that negatively affects performance and productivity levels. Therefore organisations must invest in fostering a healthy workplace culture through open communication channels, transparent decision-making processes, employee empowerment programmes and continuous feedback mechanisms.

In today’s competitive business environment where retaining top talent is critical for growth and success, it is essential to prioritize creating a positive organisational culture that fosters inclusivity, respect and support for all employees’ wellbeing. By doing so, companies will position themselves as employers of choice capable of attracting top talent while enhancing employee satisfaction levels leading to better performance outcomes.

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