Often when we talk about employee experience, we are looking at every interaction an employee has with their organisation. As Gallup say: “All the individual moments of an employees experience play a role in how a worker feels about an employers’ purpose, brand and culture”
But what is organisational culture and why does it play such an important part of an employee’s experience? In this blog we are going to look at:
- What it is
- The different types
- How to choose the right culture?
- HR’s role
What is it?
Culture as a word comes from the Latin word “Cultura” which means to tend or to cultivate. So, we can say it is how the leaders tend or cultivate the business, taking care of employees and stakeholders. It is how everyone behaves, and that the behaviour is a consistent one.
But why is that important? Well, a good organisational culture will enable a company to meet its objectives; it will also attract & retain the right people. It is also something that is marketed out to customers and stakeholders. It should mirror the core values and purpose of the organisation. And can be seen as something that directly reflects the leadership, as it can be observed in how decisions are made (are they top-down, bottom-up?) how involved are people in the decision-making process? Are people safe to challenge when they feel something is not right, and how are people recognised when they go the extra mile?
Types of culture
The best-known classifications of types of organisational culture are “The company values framework” and the “Leader’s guide to corporate culture”. In their Company Values Framework, Kim Cameron & Robert Quinn at the University of Michigan identified four distinct types:
Adhocracy – dynamic, entrepreneurial, create culture
This is a combination of the words ad-hoc and bureaucracy. These organisations are flexible and not inhibited by policies and procedures. Innovation & improvement is key at an agile, fast pace. Examples include Apple, Google, and Facebook.
Clan – people orientated, friendly, collaborative culture
This is a close-knit & woven group of people who share a strong common interest. This works well for small or family-owned businesses that are not hierarchical. People are valued regardless of their level and the environment is one of support. Examples include Redmond (Real Salt) and Chobani
Hierarchy – process orientated, structured, control culture
Probably the most common especially in large organisations in both private and public sector. People who work in a hierarchical culture know where they sit in the chain of command, who they are accountable for and who they report to, there are rules, and it is data driven. Organisations with a hierarchical structure will manage risk, be stable and operationally efficient, though this may hinder the ability to be able to innovate and be agile. Examples include Banks, health trusts, government departments and gas and oil companies.
Market – results orientated, competitive, compete culture
This has the bottom line – profit. Namely profit margins and competitive advantage. It’s results orientated, with a strong focus on customer experience to guarantee success. Innovative products & services are crucial and getting them out ahead of competitors. High demand and expectations are placed on people with less of a focus on employee experience and engagement. Examples include Tesla and Amazon.
The Leaders guide
The leaders guide published in the Harvard Business Review in 2018, sets out others which can be part of the four:
- Purpose organisational culture – value driven
- Learning organisational culture – growth
- Enjoyment organisational culture – sense of humour
- Results organisational culture – targets, goals and performance driven
- Authority organisational culture – strong leadership
- Safety organisational culture – risk averse, fostering safety
- Order organisational culture – rules, procedures & defined roles
- Caring organisational culture – strong engagement in an organisation that cares for its people
How to choose what’s right for you?
In order to choose the right one for your organisation you need to think about:
- Organisation goals – where is the organisation going to?
- Teams working styles
- Changes your business is going through
Kim Cameron created an online assessment tool to help people assess the culture of their organisation. It helps establish where it is at the moment and to understand what the preferred workplace culture is in order to help you to start on a path towards your ideal. The assessment takes around 15 minutes to complete, and you will receive access to a report.
HR’s role
Whilst it ultimately starts with the leadership team; HR has a pivotal role to play in shaping it, as well as influencing leadership.
HR can educate and equip leaders to model cultural values.
The organisational culture will be visible through the employee lifecycle:
- Recruitment process
- Onboarding
- Performance management
- Skills development
As well as the decisions made from the results of employee surveys.
HR can help drive this forward by:
1. Providing feedback – always actively listening to people and feedback to the leadership team
2. Embrace DEI – ensure that the organisation is attractive to diverse candidates as this will help to create an inclusive environment
3. Being change champions – HR is there to own processes, streamline and automation and help deal with resistance to change by supporting people through it. If your culture is adhocracy there is not likely to be an HR department; so, someone may need to be hired with the right skills to assist.
4. Develop policies – these must of course support employment laws but also reflect and shape the culture. Policies are very important in a hierarchical organisation.
Finally, organisational culture has a significant impact on how you approach work, brand and achieving objectives. By knowing the different types, you can understand which type your organisation should have and what you need to change in order to achieve it.
If you want to have a chat with us and see how we can help you, please get in touch.
@Karen
