Corporate culture models represent the natural environment inside a company. In some cases, the model may not have a formal structure or defined rules. The common types of corporate culture models include clan, adhocracy, hierarchy, and market. The former two culture models are more organic in nature, while the latter two are mechanistic. A company can select whichever method meets the personal goals, beliefs, and values of those who run it and set the organization’s guidelines.
Clan corporate culture models often demonstrate characteristics of cohesiveness, participation, teamwork, and sense of family. This creates a strong bond among the workers in a single company. Employees tend to be loyal and crave the traditions that make the company successful. Owners and executives may be more intent on creating high morale and developing the attributes of each individual employee. Smaller organizations may have the ability to perpetrate this model better than large organizations.
Adhocracy is a more creative, adaptive, and entrepreneurial among the corporate culture models. Organizations that use this model tend to be more flexible in operations as they look to expand business lines. Risk taking is also more inherent; individuals are often more willing to take risks for the potential rewards involved in the business opportunity. Innovation and growth are necessary here as the organization looks to be more aggressive in gaining market share. Though informal in nature, exploration is another essential attribute for adhocracy.
Companies that use hierarchy corporate culture models tend to be in favor of discipline and structure. Order, rules, and uniformity are necessary here to create the organizational structure, which owners and executives believe offers the best opportunity for success. Individuals who work in these organizations often believe in rules and policies. Adherence to these two factors should lead to efficient and effective operations. Owners and executives are usually the individuals who create the rules and policies that grow and foster the hierarchy corporate culture model.
A market corporate culture model is an analytical approach to an organization’s internal workings. The attributes here include competitive and goal achievement, the purpose of which tend to focus on creating a stronger market share. Owners and executives tend to be decisive and set multiple achievements for their employees. These organizations tend to hire individuals who are willing to achieve a competitive advantage and the company’s goal of market superiority. This corporate culture model is typically the most aggressive of all the models.