8 Types of Company Culture: Which is Yours?

Let’s talk about company culture—it’s more than just a buzzword; it’s a game-changer for businesses today. Sure, the products and services a company offers are important, but what truly powers an organization is its strategy and the types of company culture that drive success. The way employees interact, make decisions, and connect with company values plays a massive role in shaping this culture, affecting everything from productivity and employee happiness to the company’s overall reputation.

If you’re a business leader aiming to create a work environment that really reflects your goals and values, understanding the different types of company culture is key. In this post, we’ll explore the 8 types of company culture, breaking down each one with examples so you can see which type fits your organization best.

So, why does company culture matter so much? And how can you figure out what types of company culture your organization has? We’ll dive into these questions and more, giving you a clear picture of the various corporate cultures and how to evaluate and possibly transform your own.

What is company culture?

Company culture refers to the shared values, beliefs, attitudes, and behaviors that characterize the way individuals within an organization interact with each other and approach their work. It encompasses the unwritten norms and customs that influence the overall work environment, fostering a sense of identity and guiding how employees collaborate, make decisions, and contribute to the company’s success.

Why is company culture so important?

Company culture (or corporate culture), can be defined as the values, beliefs, and group norms that guide a workforce in its behaviours, has become a hot topic among business leaders in recent years as a measure of company success. In a research paper on corporate culture , 92% of surveyed companies agreed that culture is a major factor in a firm’s value.?

Various research shows that companies with strong company cultures and high employee engagement experience higher profitability, better productivity, earn great reputations, and have ease attracting the best talent in the market. For those reasons, business leaders have been doing their best to implement employee reward and recognition programs as part of their culture to get the very most out of their employees.?

But what makes a “strong company culture”??

It’s not one size fits all. If you’ve worked in a couple of different companies through the course of your career, you’ve probably experienced, firsthand, how every culture is wildly different. In a Harvard Business Review study, “The Leader’s Guide to Corporate Culture” , culture experts Boris Groysberg, Jeremiah Lee, Jesse Price, and J. Yo-Jud Cheng made their efforts to define the 8 of the most common corporate cultures based on two factors placed along an axis: how people interact, and how they respond to change.

You can watch The 8 Types of Company Culture explainer video here .

Let’s get into the characteristics of these 8 styles of corporate cultures to find out which one sounds the most like your organization. Bear in mind that you might identify with more than one of these culture types since cultures can often be a mix. Most of the time, you’ll find you identify strongly with one primary culture as well as one secondary culture.??

The 8 types of company culture?

1. The caring culture — “we support & help each other”?

Caring corporate cultures are warm working environments that prioritize mutual trust, respect, and positive relationships within the company. In the Harvard study, 63% of companies in the sample ranked themselves as having this cultural style as their first or second culture type. A perfect example of this type of culture can be found at HubSpot, where they believe that “culture is to recruiting as marketing is to product,” which is why they have made cultivating a company culture that their employees love, a top priority. With initiatives such as flexible work, unlimited vacation and continuous learning support, HubSpot is a great example of a company with a caring culture.

Your company might have a caring culture if:

• On any given day in the office, you see lots of teamwork and cross-functional collaboration between teammates.?
• Your employees treat one another kindly.
• Your leaders make it a point to put employee needs first.?
• Your corporate culture feels like a family.

2. The purpose culture — “we care about what we do”?

The purpose culture is an idealistic one. 9% of companies in the HBR identified with this culture type. Companies with a purpose culture care about the role their organization plays in the world. Patagonia is an excellent example of a company with a purpose culture. Patagonia is built on the mission to create the best products while causing the least amount of harm. From their Worn Wear Program where you can buy second hand Patagonia products, to their 1% for the planet initiative where a percentage of the company’s annual sales go to good causes, Patagonia has become a successful purpose culture leader.

Your company might have a purpose culture if:

• It is passionate about its mission.?
• Its mission is focused on sustainability or supporting the global community.?
• Your employees feel united in your company’s mission and vision in creating a brighter future.

3. The order culture — “we follow the rules”

Order cultures value structure, stability, and clear guidelines. These companies thrive on established processes and a predictable work environment. An example of an order culture can be found at IBM, where established protocols and a focus on precision and reliability have long been the norm.

Your company might have an order culture if:

• Employees are rewarded for following the rules.
• It has long-standing shared norms and customs.
• It is cooperative in nature, but likes to do things right.?
• Processes and changes in the business are very predictable.?
• It has very clear hierarchies.
• Its guidelines and processes are well documented, followed and almost set in stone.?
• Making big changes is often a slow and unwelcome process.

If you’ve made it this far, you’re not going to want to miss out on the 4 other types of company culture, tips for evaluating your own culture and more! Click here to keep reading.