{"id":34516,"date":"2020-12-09T16:37:00","date_gmt":"2020-12-09T14:37:00","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=34516"},"modified":"2025-05-06T02:07:02","modified_gmt":"2025-05-06T00:07:02","slug":"work-culture-definition","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/work-culture-definition\/","title":{"rendered":"Work Culture: Definition, Types and Tips to Improve It"},"content":{"rendered":"<p>Your company&#8217;s work culture is one of the key drivers of its success. A good company culture results in <strong>more engaged, productive, and loyal employees.<\/strong> \u00a0What makes for positive workplace culture?<\/p>\n<p>Perks and ping-pong tables do not necessarily mean a positive office culture. Instead, company culture is about the <strong>attitude and environment that management creates and maintains<\/strong>. A positive work culture supports and encourages workers and protects employee well-being. In this post, we&#8217;ll cover the definition of work culture, benefits, and provide examples of companies with model work cultures.<\/p>\n<ol>\n<li><a href=\"#Work-Culture-Definition\">Work Culture Definition<\/a><\/li>\n<li><a href=\"#Why-Work-Culture-is-Important\">Why Work Culture is Important<\/a><\/li>\n<li><a href=\"#Types-of-Work-Culture-The-Competing-Values-Framework\">Types of Work Culture: The Competing Values Framework<\/a><\/li>\n<li><a href=\"#Workplace-Culture-Examples\">Workplace Culture Examples<\/a><\/li>\n<li><a href=\"#Tips-for-Improving-Work-Culture\">Tips for Improving Work Culture<\/a><\/li>\n<li><a href=\"#FAQs\">FAQs<\/a><\/li>\n<li><a href=\"https:\/\/factorialhr.com\/hr-reports\">\u2705 Measure Employee Satisfaction with Factorial \u2705<\/a><br \/>\n<a name=\"Work-Culture-Definition\"><\/a><\/li>\n<\/ol>\n<h2><a name=\"definition\"><\/a><strong>Work Culture Definition<\/strong><\/h2>\n<p>The work culture definition <strong>is the attitudes and behaviors of employees within an organization.<\/strong> Many things influence the company culture, ranging from the work environment (ok, so ping pong tables don&#8217;t hurt), policies, leadership, goals, values, and mission. In one study, 78% of executives said that culture is among the top five things that make their company valuable\u2014 but <a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=2805602\" target=\"_blank\" rel=\"noopener noreferrer\">84% said they need to improve<\/a> their work culture.<\/p>\n<p>A positive work culture doesn&#8217;t just happen. It takes thoughtfulness and careful cultivation. If you haven&#8217;t been thinking about your organization&#8217;s culture, chances are it isn&#8217;t where it needs to be. That can mean some major repercussions. A study in Sweden found that <a href=\"https:\/\/news.ki.se\/poor-leadership-poses-a-health-risk-at-work\" target=\"_blank\" rel=\"noopener noreferrer\">employees under &#8220;poor&#8221; leadership had a 25% higher incidence of heart problems<\/a>. Physically and mentally stressed employees are not only less engaged. <strong>They&#8217;re also more likely to call out of work and eventually leave the company, leading to sky-high absenteeism and <a href=\"https:\/\/factorialhr.com\/blog\/causes-high-turnover-rate\/\" target=\"_blank\" rel=\"noopener\">turnover rates<\/a>.<\/strong> This can cost organizations big time.<\/p>\n<p>Organizations with positive work environments conversely have more <a href=\"https:\/\/hbr.org\/2015\/12\/proof-that-positive-work-cultures-are-more-productive\" target=\"_blank\" rel=\"noopener noreferrer\">productive, loyal employees<\/a>. Fortunately, there are a lot of ways to <a href=\"https:\/\/factorialhr.com\/blog\/nurturing-employee-experience\/\" target=\"_blank\" rel=\"noopener noreferrer\">nurture the employee experience<\/a>. <strong>Promoting diversity, transparency, and understanding can do wonders for a business.<\/strong> Furthermore, visible and accessible leaders inspire employees and keep management in touch with day-to-day problems. This means higher retention, reduced absenteeism, and best of all, happier and healthier employees.<br \/>\n<a name=\"Why-Work-Culture-is-Important\"><\/a><\/p>\n<p><iframe title=\"YouTube video player\" src=\"\/\/www.youtube.com\/embed\/pK2XJGh1svA?si=81V9ZhIhYIaK2u66\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><em><strong>Want a quick summary on best work culture practices?<\/strong><\/em> Watch this video (it&#8217;s <span style=\"text-decoration: underline;\">less<\/span> than 10 minutes!)<\/p>\n<h2><a name=\"important\"><\/a><strong>Why Work Culture is Important<\/strong><\/h2>\n<p>How, exactly, will a strong work culture affect your bottom line? Here are just a few of the benefits you can expect to see if you invest in building a strong culture.<\/p>\n<h3><strong>A Positive Work Culture Means Increased Retention Rates<\/strong><\/h3>\n<p>We&#8217;ve already mentioned this, but let&#8217;s dig a little deeper. High turnover isn&#8217;t just bad for morale. A survey from SHRM showed that the <a href=\"https:\/\/www.shrm.org\/topics-tools\/news\/talent-acquisition\/real-costs-recruitment\" target=\"_blank\" rel=\"noopener\">average cost-per-hire is around $4,700<\/a>. If your turnover rate is high, your business is most likely spending thousands of extra dollars a year just to keep positions filled. And that number doesn&#8217;t even factor in the expertise and knowledge that departing employees take with them.<\/p>\n<h3><strong>Workplace Culture Can Lead to a Growth Mentality<\/strong><\/h3>\n<p>A positive work culture encourages growth at the personal and organizational levels. <a href=\"https:\/\/factorialhr.com\/blog\/growth-mindset-meaning\/\" target=\"_blank\" rel=\"noopener\">Employees with a growth mindset<\/a> will feel empowered to do their best work and pursue opportunities.\u00a0 Businesses can harness the expertise of long-standing workers who have stayed with the company and attract new talent with their positive atmosphere.<\/p>\n<h3><strong>A Strong Work Culture Means Increased Productivity<\/strong><\/h3>\n<p>A positive company culture leads to happier employees who feel valued and supported. Happy employees aren&#8217;t just more pleasant to work with. According to Oxford University, <a href=\"https:\/\/www.ox.ac.uk\/news\/2019-10-24-happy-workers-are-13-more-productive\" target=\"_blank\" rel=\"noopener noreferrer\">happy employees are 13% more productive<\/a> than their grumpy counterparts. And that&#8217;s not all! Satisfied workers will also serve as brand ambassadors when they talk about their positive work experiences. That looks good to potential clients and future employees.<\/p>\n<h3><strong>Financial Success<\/strong><\/h3>\n<p>According to a long-term study, businesses with great work cultures saw <a href=\"https:\/\/www.forbes.com\/sites\/johnkotter\/2011\/02\/10\/does-corporate-culture-drive-financial-performance\/?sh=c2881817e9e9\" target=\"_blank\" rel=\"noopener noreferrer\">an 682% growth in revenue over eleven years<\/a>. Meanwhile, those without the right company culture only grew by 166%. The numbers are clear: businesses that create a positive environment are more likely to be successful.<br \/>\n<a name=\"Types-of-Work-Culture-The-Competing-Values-Framework\"><\/a><\/p>\n<h2><a name=\"types\"><\/a>Types of Work Culture: The Competing Values Framework<\/h2>\n<p>Workplace culture comes in all shapes and sizes and is never static. In 1983, researchers Robert Quinn and John Rohrbaugh decided to define the structural differences in organizational culture with something known as the &#8220;<strong>Competing Values Framework<\/strong>.&#8221; According to the Competing Values Framework, companies tend to have characteristics that tie them to one or more of the following types: <strong>Clan <\/strong>Culture<strong>, <\/strong><strong>Adhocracy <\/strong>Culture<strong>, <\/strong><strong>Hierarchy <\/strong>Culture or <strong>Market <\/strong>Culture.<\/p>\n<p>Now, let&#8217;s go through the meanings of each workplace culture type, one by one.\u00a0We will outline the qualities of each, as well as the overall implications.\u00a0 Which one does your organization most closely model?<\/p>\n<h3><strong>Clan Culture<\/strong><\/h3>\n<p>Clan cultures are characterized by <strong>horizontal, close-knit connections between employees.<\/strong> Basically, clan cultures are more or less the opposite of hierarchical cultures. Emphasis is given to teamwork, workplace equality, mentorship, <a href=\"https:\/\/factorialhr.com\/blog\/internal-communications\/\" target=\"_blank\" rel=\"noopener\">internal communications<\/a>, apprenticeship, and one-on-one employee training.\u00a0 Unsurprisingly, employee engagement is often high in these nurturing and communicative environments.<\/p>\n<p>Many smaller and family-owned businesses closely resemble a people-oriented clan culture.\u00a0 However, it becomes increasingly more difficult to maintain this particular model as businesses grow and connections become more complicated.<\/p>\n<h3><strong>Adhocracy Culture<\/strong><\/h3>\n<p>An adhocracy culture is commonly found in start-ups and tech businesses like Google and Apple\u00a0 Combining the terms &#8216;Ad hoc&#8217; and bureaucracy, an adhocracy culture is largely uninhibited from the regulations and complexities of bureaucratic processes.\u00a0 Instead, these cultures are known for <strong>flexibility, agility, and innovation.<\/strong><\/p>\n<p>An adhocratic culture <strong>works especially well for tech companies that need to stay on top of changing trends and continually push out new ideas.<\/strong>\u00a0 With this particular workplace culture, a workforce can adapt and move forward at a faster pace.<\/p>\n<p>The only complication arises when companies experience considerable growth.\u00a0 Under these circumstances, it may be impossible to comply with certain legal and business practices. Rather than adopting an adhocratic culture throughout the entire organization, it may be best for growing companies to have an adhocracy culture within certain departments.<\/p>\n<h3><strong>Hierarchy Culture<\/strong><\/h3>\n<p>As the name suggests,\u00a0 a hierarchical culture is <strong>defined by structure and levels of authority.<\/strong>\u00a0 It is one of the most commonly found workplace cultures in larger corporate environments.\u00a0 In this particular type of working model, roles, responsibilities, and goals are clearly defined.<\/p>\n<p>In a nutshell, hierarchical cultures have clearly organized power structures, which can equate to <strong>efficiency and overall stability.<\/strong>\u00a0 However, this particular type of workplace culture might also mean hindered flexibility and agility.\u00a0 Depending on the type of business needs and industry, it may or may not be in the best interests for a company to adopt this model.<\/p>\n<h3><strong>Market Culture<\/strong><\/h3>\n<p>In a Market culture, results drive the processes. For organizations that have a strong market culture, the focus is on the competition and staying ahead of the curve.\u00a0 Basically, the focus is on the outside market, rather than internal processes.<\/p>\n<p>Although a market culture has its advantages, especially in fast-changing and customer service industries, there are some drawbacks to this type of work culture.\u00a0 Often, leaders and employees are under a high amount of pressure to continually innovate and stay ahead of the game.\u00a0 This can lead to increased levels of employee burnout and workplace toxicity.<br \/>\n<a name=\"Workplace-Culture-Examples\"><\/a><\/p>\n<h2><a name=\"examples\"><\/a><strong>Workplace Culture Examples<\/strong><\/h2>\n<p>It&#8217;s easy to talk the talk, but are you ready to walk the walk? Here are our top three companies with interesting organizational cultures and what you can learn from them. This is how creating a thriving culture looks in the real world.<\/p>\n<h3><strong>What is the Workplace Culture of Twitter?<\/strong><\/h3>\n<p>Twitter has become famous for having employees who truly believe in their work. It&#8217;s not just the gimmicky stuff startups are known for like rooftop meetings, free lunches, and gym memberships. Even though extra benefits can be appealing, studies show that <a href=\"https:\/\/www.gallup.com\/workplace\/236483\/enhances-benefits-employee-engagement.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">these perks don&#8217;t matter to employees<\/a> as much as positive workplace cultures do. Employees want to work for a company with a mission they believe in. Twitter has done a great job unifying workers toward a common goal. Twitter has also prioritized <a href=\"https:\/\/careers.twitter.com\/en\/tweep-life\/diversity.html\" target=\"_blank\" rel=\"noopener noreferrer\">creating a diverse and inclusive environment<\/a>, which is key to creating a good work culture.<\/p>\n<h3><strong>Etsy Work Culture: Personal and Professional Support<\/strong><\/h3>\n<p>Etsy, the online retail platform, encourages workers to be themselves from the moment they start work. New workers receive a $50 credit to decorate their office space and encouragement to perform a special talent at the next all-hands meeting. Etsy also provides benefits which support employee&#8217;s work-life balance, such as <a href=\"https:\/\/www.forbes.com\/sites\/clareoconnor\/2016\/03\/16\/etsys-6-month-paid-parental-leave-the-new-normal-in-tech-as-u-s-law-lags\/?sh=21840c6a673b\" target=\"_blank\" rel=\"noopener noreferrer\">26 weeks of parental leave<\/a> to both new mothers and fathers. Employees can pursue professional development through Etsy&#8217;s learning and engagement program. Employees in this environment feel valued for who they are as much as what they can do.<\/p>\n<h3><strong>Define Costco&#8217;s Work Culture: Participation at the Forefront<\/strong><\/h3>\n<p>Costco is well-known for having generous compensation and benefits in comparison with its competitors. For example, they offered their workers a <a href=\"https:\/\/www.wsj.com\/articles\/costco-beats-profit-expectations-in-latest-quarter-11551996298\" target=\"_blank\" rel=\"noopener noreferrer\">$15 minimum wage in 2019<\/a>. But they also create a culture that allows employees to speak up, offer suggestions, and take initiative. Having a good work culture means making employees feel heard, and Costco encourages employees to participate in decision-making processes.<br \/>\n<!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-2493a455-07a7-4965-9faf-ec449b8bbc5b\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-2493a455-07a7-4965-9faf-ec449b8bbc5b\" class=\"hs-cta-node hs-cta-2493a455-07a7-4965-9faf-ec449b8bbc5b\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/factorialhr.com\/get-started\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" id=\"hs-cta-img-2493a455-07a7-4965-9faf-ec449b8bbc5b\" class=\"hs-cta-img\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/4960096\/2493a455-07a7-4965-9faf-ec449b8bbc5b.png\" alt=\"New call-to-action\" width=\"900\" height=\"308\" \/><\/a><\/span><\/span><\/p>\n<h2><a name=\"tips\"><\/a><strong>Tips for Improving Work Culture<\/strong><\/h2>\n<p>If your work culture still has some room for improvement, don&#8217;t worry. Here are our best tips on how to change work culture and create an environment that employees feel excited about.<\/p>\n<h3><strong>Clearly Define Your Cultural Values<\/strong><\/h3>\n<p>To establish a strong work culture, make your vision clear. Express values clearly through a mission statement and reiterate these values through all communications. Most importantly, make sure that your business is taking action to represent these values in the world. Employees will be excited to contribute to an organization making a difference.<\/p>\n<h3><strong>Encourage Collaboration and Communication<\/strong><\/h3>\n<p>Employees will perform better under open and honest leadership. In short:<strong> transparency is key!<\/strong> Keep employees in the loop and make sure that they have opportunities to give feedback or offer suggestions. Check-in regularly with employees about expectations, goals, and performance. By communicating regularly, you can reduce misunderstandings and make sure problems are addressed as they arise. Furthermore, sending out <a href=\"https:\/\/factorialhr.com\/templates\/employee-satisfaction-survey\">employee satisfaction surveys<\/a> is a great way to receive feedback and understand your company&#8217;s work culture more.<\/p>\n<h3><strong>Create a Diverse and Inclusive Workplace<\/strong><\/h3>\n<p>It is vital to <a href=\"https:\/\/factorialhr.com\/blog\/diverse-workforce-2\/\" target=\"_blank\" rel=\"noopener noreferrer\">cultivate a diverse workforce<\/a>. This won&#8217;t just make your workforce more creative, innovative, and agile. It will also help create an open work culture that supports and nurtures all employees. Valuing individual differences gives employees the opportunity to leverage their unique skills and abilities. For example, use inclusive signage, stay alert for unconscious bias, and adjust your hiring practices to be more inclusive.<\/p>\n<p><a href=\"https:\/\/factorialhr.com\/templates\/download-free-hr-audit-checklist\"><img decoding=\"async\" class=\"alignnone wp-image-114865\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2019\/08\/23152335\/hr-audit-checklist-banner-300x103.png\" alt=\"hr-audit-checklist-download\" width=\"807\" height=\"277\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2019\/08\/23152335\/hr-audit-checklist-banner-300x103.png 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2019\/08\/23152335\/hr-audit-checklist-banner-1024x350.png 1024w, https:\/\/factorialhr.com\/wp-content\/uploads\/2019\/08\/23152335\/hr-audit-checklist-banner-768x263.png 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2019\/08\/23152335\/hr-audit-checklist-banner.png 1350w\" sizes=\"(max-width: 807px) 100vw, 807px\" \/><\/a><\/p>\n<h3><strong>Work Culture Means Empowering Employees\u00a0<\/strong><\/h3>\n<p>Provide employees with opportunities to further their careers and follow their interests. This can be done by implementing training programs. It can also happen through open discourse and regular communication about desires and aspirations. Celebrate successes! But when things don&#8217;t quite meet expectations, work with employees so that they can do better next time. Don&#8217;t blame or dwell. Work culture definition means supporting employees and helping them to build new skills.<\/p>\n<h3>Improving Work Culture Takes Time<\/h3>\n<p>If you are bogged down with manual tasks, administrative paperwork and other boring tasks you probably feel drained. It&#8217;s hard to focus on employee well-being when you can&#8217;t even find the time to take care of yourself. Luckily, not all manual tasks have to take so long. Nowadays, HR automation and even AI can help lessen your workload. Don&#8217;t believe us? Check out our <a href=\"https:\/\/factorialhr.com\/hr-software\">HR software<\/a>\u00a0to learn more about how you can cut the time you spend on manual administrative tasks and start spending it on things that need more attention: your team&#8217;s well-being.<\/p>\n<h2><a name=\"FAQs\"><\/a>FAQs<\/h2>\n<h3>What is workplace culture?<\/h3>\n<p>Workplace culture <strong>is defined by the attitudes and behaviors of employees within an organization.\u00a0<\/strong>Some workplace cultures are tied with the company&#8217;s overall mission, meaning business goals and employees&#8217; behaviors are aligned.<\/p>\n<h3>What are the types of work culture?<\/h3>\n<p>The four types of work culture are: <strong>Clan <\/strong>Culture<strong>, <\/strong><strong>Adhocracy <\/strong>Culture<strong>, <\/strong><strong>Hierarchy <\/strong>Culture or <strong>Market <\/strong>Culture. Companies can have characteristics of more than one type of work culture.<\/p>\n<h3>How to improve work culture?<\/h3>\n<p>There are many ways to improve work culture, but the best place to start is by defining your company&#8217;s core values. This ensures your employees can align their work with your mission. Additional strategies include being transparent, having clear communicate amongst your team, and encouraging professional and personal development.<\/p>\n<h3>How to change work culture?<\/h3>\n<p>Changing work culture takes time, but the ripple effect will eventually occur. Ensure to implement new policies that align with the culture you want to create. After sometime your policies and team will reinforce each other thus successfully changing the work culture.<\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What is workplace culture?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Workplace culture is defined by the attitudes and behaviors of employees within an organization.\u00a0Some workplace cultures are tied with the company's overall mission, meaning business goals and employees' behaviors are aligned.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What are the types of work culture?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"The four types of work culture are: Clan Culture, Adhocracy Culture, Hierarchy Culture or Market Culture. 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After sometime your policies and team will reinforce each other thus successfully changing the work culture.\"\n    }\n  }]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Your company&#8217;s work culture is one of the key drivers of its success. A good company culture results in more engaged, productive, and loyal employees. \u00a0What makes for positive workplace culture? Perks and ping-pong tables do not necessarily mean a positive office culture. Instead, company culture is about the attitude and environment that management creates<a href=\"https:\/\/factorialhr.com\/blog\/work-culture-definition\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":136,"featured_media":47786,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[348],"tags":[],"class_list":["post-34516","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-culture-engagement-2"],"acf":{"topics":"engagement"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Work Culture: Definition, Types and Tips to Improve It- Factorial<\/title>\n<meta name=\"description\" content=\"Great work culture means happier, healthier, more productive employees. 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