Understanding the culture of a business can help the owners, managers, and other employees achieve the company's vision for success.
Definition of Business Culture
A good place to start is by defining business culture:
The culture of business is the environment in which it operates; this includes its philosophy, values, shared assumptions, group standards, and the behavioral patterns of its employees. These cultural beliefs are taught to new employees as the correct ways to perceive, think and act within the business.
How is this system of beliefs and values taught to the employees of a company? Primarily in the form of a mission or vision statement which describes ways that the owners, managers and employees should think, feel and act within the business environment. Cultural beliefs and values within a business are also expressed to employees via corporate symbols, logos, employee handbooks, training sessions, seminars, and workshops—all of which have the goal of convincing employees to adopt the same ideals of success and the same methodologies for achieving that success as the founders of the business originally established. Whatever form it takes, understanding the culture of a business is crucial in determining its ultimate outcome.
Subcultures Within a Business
Most business cultures are divided into specialized categories (these are called subcultures) that work within the broader context of professional culture. Here are four common subcultures that exist in most business cultures:
- Power Subculture: This subculture deals with leadership and allocation of resources. When handled appropriately, the Power Subculture produces leaders who are fair yet firm in their beliefs and in their actions. These leaders set the goals and tone of the culture of the business. If this subculture is managed inappropriately, then employees may be governed by fear, abuse of power for personal gain and/or political manipulation.
- Achievement Subculture: This subculture rewards results and recognizes employees who are working with the vision of the company in mind. Rules, structure and work teams serve the business in this subculture.
- Support Subculture: The primary purpose of the Support Subculture is to place value upon the employee as both a person and as a worker. Employee satisfaction and harmony is important; workers who feel unappreciated, manipulated or abused will not exert their best efforts for the company, and when this happens the entire business culture is negatively affected.
- Role Subculture: This subculture deals with rules and responsibility for both management and employees. Roles within a business culture must be clearly understood in order for all divisions of the company to work toward the company’s vision. This subculture designates clear responsibility, rewards, and penalties regarding role designation. The Role Subculture also provides the business with efficiency and stability.
How Can Cultural Understanding Help a Business Achieve Its Goals?
Now that the definition of business culture and its supporting subcultures has been established, it is time to examine the question of how cultural understanding can help a business achieve its goals. An effective method to accomplish this is by asking the following questions about the culture of the business:
- In the Power Subculture of the business, who are the leaders? What type of style and pace do these leaders set for the company? Are these leaders effective in motivating employees to accomplish the goals of the company?
- In the Achievement Subculture, what type of behavior is rewarded? Condemned? Ignored? How effective and timely is the feedback that employees receive? Are unethical business practices condoned?
- In the Support Subculture, how is excellent performance encouraged in the company? What type of performance appraisal system do is employed? Is adequate professional development offered to all employees?
- In the Role Subculture, are the company’s goals and values emphasized to each employee (including leaders and other workers) on a regular basis? Are their specific job duties clearly set out with expectations and performance standards? How is productivity encouraged?
A Final Word About Corporate Cultures
Corporate cultures are mysterious by nature: they are intangible, they shift and evolve over time, and they are difficult to monitor because they are comprised of the ideas, beliefs, and values of a variety of independently thinking individuals. However, recognizing that all business cultures are based on the goals of the company's founders, that they are comprised of the experience and performance of its leaders and employees, and that proper management of subcultures can further the vision of the company can help any business achieve its goals.
