Types of Organizational Culture in Modern Business

Types of Organizational Culture in Modern Business

Organizational culture, as a set of values and rules a company has, can be a great weapon in taking over the market. The better the corporate culture, the more effective the team is, which then surely leads to more profit. Establishing a productive corporate culture in a company should be a part of the general business plan.

However, implementing the organizational culture in a team can be tricky for a number of reasons. First of all, it takes a lot of time. Managers need a lot of effort to set up the rules the company values and the employees take even more time to acquire them. On top of that, the company’s management needs to know exactly what kind of corporate culture they want to achieve. Because there are several types of them, making changes too often could be tricky.

Most Common Corporate Culture Styles

The whole corporate culture philosophy was born in the USA and has spread across the world when people realized how important it was. These days, some corporate values like fairness and punctuality are implied. The thing that separates different types of corporate cultures is the amount of risk. Ambitious companies are looking to make big profits in a short amount of time, so they need to use a different corporate culture model than those that are looking for a steady income.

Risk-Taking Corporate Cultures

Usually, large companies have the commodity to plan their business strategy for years in advance. Their corporate culture is the one related to investments. Their focus is making big profits in a long-term, so most of their work is focused on planning, instead of tackling everyday issues.  A great example of this type of corporate culture is the one used in oil companies.

Smaller companies can also employ a risk-taking philosophy. A corporate culture, which favors ambitious investments that can bring a lot of profit in a short period of time are perfect for those business dealing with the stock market or marketing.

Risk-Free Corporate Culture

There are modern businesses whose owners do not want to get rich at any cost. Instead, they want a steady income, without too much stress. In order to assure their business is stable, these companies need to have a risk-free corporate culture, which values stability rather than risk.

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