What is Company Culture?

14 July 2021 | 4 Minute
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What is Company Culture?


Company culture includes all of the values that apply to an entire organization, unite its personnel, and establish common goals, objectives, and principles. The company culture, which develops through time and is influenced by a variety of factors, encompasses all procedures inside an organization and may change as those processes evolve. As a result, developing human resources practices that affect company culture, such as talent management and internal communication, can enable you to build an effective company culture.


What is the definition of company culture? 

Institutions made up of people from many cultural backgrounds develop a shared set of beliefs and values. This approach aims to bring together different beliefs, attitudes, actions, and expectations, as well as unite personnel around a shared goal. The company culture is a formation that brings together the institution and its personnel. Every organization has its own culture, just as every society has its own. Their cultures set them apart from other organizations. 

Despite the fact that each institution has a different culture, all cultures have certain fundamental aspects. Company culture consists of the norms, values, beliefs, and habits that direct the behaviors, attitudes, and thoughts of your employees within the organization. These elements of company culture can be defined as follows:

  • Norms: The institutional norms that are adopted by employees are the factors that influence company culture behaviors and institutionalize and enhance the social system.
  • Values: Internal characteristics of company culture, such as company aims, ideals, standards, and management practices, are reflected in values. Values have the ability to bring a sense of unity to a company's culture.
  • Beliefs: Beliefs, which are more profoundly and strongly established incorporate behaviors than values, are the realities that guide employees' attitudes, perceptions, ideas, and behaviors, and serve as presumptions about corporate life.
  • Habits: In company culture, habits are recurring corporate behaviors that are established by the impact of other cultural aspects. Habits are regarded as one of the most significant aspects of company culture continuity.


What are company culture's characteristics? 

It's also crucial to understand the elements of your company's culture, which shape and direct your employees' actions, attitudes, and thoughts. The following are some of the features of business culture:

  • Company culture is a structure that develops over time and serves as a kind of employee control.
  • Your company's culture, which is shared by all employees, fosters employee engagement in the organization.
  • Repeated behavioral patterns, not a written text, embody company culture, which is found as a belief and value in the psyche of your personnel.
  • Company culture establishes a sense of belonging for both the organization and its personnel. This identification demarcates the difference between one institution and another.


What kinds of company culture exist? 

Despite the fact that each organization has its own company culture, basic classification of company cultures may be created based on their characteristics. This classification includes the following types and characteristics of company culture:

  • Clan Culture: Clan culture, especially seen in small or newly established businesses, is an inward-oriented model with a focus on unity and solidarity, in which company engagement stands out. In the clan culture, informal control and evaluation processes are carried out. Core values are determined by teamwork, communication, and consensus. In clan culture, which has a team-based model, managers take the role of mentoring.
  • Adhocracy Culture: The adhocracy culture, in which institutional prestige and positions are uncared about and considered transient, has a structure that prioritizes individuality. Employees are encouraged to accept personal responsibility and risk at firms with this culture. Therefore, there is no propensity in this society to centralize. Innovation, inventiveness, and agility are the essential values of the adhocracy culture.
  • Hierarchy Culture: In the hierarchical culture where the job responsibilities of the unit and employees are determined, internal order and rules are prioritized. Employees are required to follow the determined consistency and uniformity of this cultural system, which has a bureaucratic and official structure and to do only what is asked of them. There is a need to enhance employee engagement levels in institutions with a rule-oriented bureaucratic structure and a hierarchy culture.
  • Market Culture: Unlike clan culture, which is inward-focused, market culture is outward-focused and focuses on the goals, employee performance toward the goals, and the results gained. Institutions with a market culture strive for market dominance and competitive advantage. Ambitious managers direct staff in firms with this culture to accomplish and exceed goals.


How can appreciation and acknowledgement be used to create a positive company culture? 

Although each organization develops its own company culture, there are some features that are shared by all. Values, for example, serve as a leading factor for a company culture that extends beyond short-term company goals, staff responsibilities, and organizational units.

Appreciation and recognition are some of the most effective approaches to establish a value-oriented company culture. Making appreciation and recognition a part of the company culture that creates and directs the common life in the firm can help to enhance your basic values. For this, you need exactly prepare your appreciation and recognition system's implementation process and guarantee that it runs smoothly. 

We've compiled a list of recognition and appreciation application suggestions to help you build a great company culture:

  • Specify your recognition and appreciation: Define the meaning of appreciation and recognition in the planning phase of your system. Recognize and appreciate should be seen as a corporate procedure with guidelines for implementation. As a result, every one of your employees will be able to correlate the appreciation and recognition they get with both their achievement and the company's principles.
  • Implement the system across your entire organization: Design your appreciation and recognition system so that all of your employees may participate and express their appreciation to one another. As a result, you can increase employee motivation by allowing them to receive praise and thanks from their peers.
  • Make recognition a part of your company's culture: Employee recognition allows you to live out your company's basic principles. Furthermore, when you use proper tools to communicate employee appreciation verbally or in writing throughout the firm, your employees work with great motivation and performance to be recognized for their accomplishments. Thus, you can both increase productivity throughout the company and strengthen employee engagement.
  • Increase the variety of ways you recognize and appreciate your employees: Create a variety of ways to thank your units and their employees for their accomplishments and contributions. You can make each unit and employee feel special for your organization in this way. However, keep in mind that your gratitude should be in line with the company culture.
  • Calculate the impact of recognition and appreciation: It is not enough to simply create and implement an appreciation and recognition system that is consistent with your company's culture. You must analyze the application's effects on your employees on a regular basis, including productivity, motivation, and satisfaction, as well as the influence of your appreciation and recognition practices.

Sorwe products can help you develop a culture of recognition and appreciation in your organization, and you can manage all of your operations from a single platform. You may also help your employees be more effective by developing excellent internal communication with Sorwe. You can contact us for more information on the solutions you require to improve your company's culture.

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