Organizational culture is a collection of guiding practices and core values that determine employee engagement, productivity, and overall company success. When a company’s organizational culture is strong, employees are more likely to be productive and high-performing. 

Employees at companies with healthy organizational culture have a shared set of values. There are many benefits of developing and maintaining a strong company culture:

1. __Goal-alignment__: Employees are aligned with a purpose, vision, and clear set of goals.
2. Open <a href='https://masterclass.com/articles/robin-robertss-tips-for-effective-communication' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/robin-robertss-tips-for-effective-communication","linkCopy":"communication","category":"automated-link"}' automatic='true'>communication</a>: Group members often feel they can freely express themselves, and they respond well to change. They also feel safer <a href='https://masterclass.com/articles/how-to-take-risks' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/how-to-take-risks","linkCopy":"taking risks","category":"automated-link"}' automatic='true'>taking risks</a> and are more likely to provide honest feedback to leadership. 
3. __Employee retention__: Organizations with a healthy culture are more likely to attract elite job candidates and enjoy higher employee retention rates.

In order to learn how to improve your company’s current culture, it’s useful to understand the four types of organizational cultures, as laid out by business professors Robert E. Quinn and Kim S. Cameron of the University of Michigan:

1. __Hierarchy culture__: The most traditional organizational culture of the four types, hierarchy cultures value organizational structure and control with an emphasis on efficiency, uniformity, and the practice of strict procedures. They also boast a clear chain of command that separates employees from leadership. While there is less room for creativity, a hierarchy culture enjoys clear direction with well-defined objectives. 
2. __Clan culture__: Organizations that have a clan culture prioritize collaboration. Clan cultures focus on creating a close-knit, “one big family”-style work environment where teamwork is valued and flexibility and discretion are key. Clan culture is often found in [small companies](https://www.masterclass.com/articles/tips-for-starting-a-small-business) and startups. While it can be difficult to maintain this type of culture as an organization grows, companies that encourage a clan culture often enjoy strong employee engagement and an adaptable environment.
3. __Market culture__: The market culture is goal-oriented with a primary focus on profitability. Its leaders are demanding of their employees, and they prize the success of the company over internal satisfaction. Due to every aspect of a market culture being driven by numbers and tied to the bottom line, employees may find it difficult to engage meaningfully with their work. However, this type of culture may come with stability and can lead to success and profitability. 
4. __Adhocracy__: The adhocracy culture encourages risk-taking and experimentation. This type of culture is valued by cutting-edge companies that hope to develop the next big innovation. It emphasizes the importance of individual freedom among employees and differentiation in the market. The tech industry typically values adhocracy culture, as tech companies often focus on innovation. While this culture can foster competition among employees, it may also encourage creativity and increase motivation. 
Follow these five steps to begin cultivating a culture in which your employees can thrive:

1. __Align your company’s culture with its values__. Put your company’s values into practice every day, in all aspects of the organization. Your values should be evident in all company initiatives, including benefits programs and HR policies.
2. __Ensure that your leaders are on board with the culture__. Employees can sense if leadership is not working according to the company’s mission statement or stated values, so it is essential that all senior leaders exhibit the ideal organizational behaviors and promote shared values. They must be willing to openly discuss the culture and ensure that employees have a voice. Leaders set the tone of an organization, and if they exhibit the qualities of a healthy culture, team members will be more likely to do the same.
3. __Recognize and reward employee contributions__. By regularly commending employees for their accomplishments, you enable members of the organization to see how their work affects the organization as a whole. This can help them feel more attached to the culture, and the company may enjoy greater employee engagement, productivity, and retention as a result.
4. __Include the culture of the organization in the hiring process__. When [searching for new employees](https://www.masterclass.com/articles/sara-blakelys-tips-for-hiring-a-team), it’s important to consider whether or not they match the culture of your organization. Find out why they are interested in working for your company, and determine if they fit your unique culture. During onboarding, the organization’s values should be reinforced.
5. __Emphasize professional development and learning__. An organizational culture that focuses on learning can significantly and positively impact your company. When employees are given access to [soft skills](https://www.masterclass.com/articles/how-can-soft-skills-help-you-land-a-job) development, they are more likely to be engaged in the company culture.
Get the [MasterClass Annual Membership](https://www.masterclass.com/) for exclusive access to video lessons taught by business luminaries, including Sara Blakely, Chris Voss, Robin Roberts, Bob Iger, Howard Schultz, Anna Wintour, and more.
Learn how to elevate your company by developing a strong workplace culture.

Learn how to elevate your company by developing a strong workplace culture.


Organizational Culture: How to Create a Healthy Work Culture

Organizational culture is a collection of guiding practices and core values that determine employee engagement, productivity, and overall company success. When a company’s organizational culture is strong, employees are more likely to be productive and high-performing.

What Is Organizational Culture?

Employees at companies with healthy organizational culture have a shared set of values. There are many benefits of developing and maintaining a strong company culture:<ol class="mc-m-4"><li class="mc-my-4"> 1. Goal-alignment: Employees are aligned with a purpose, vision, and clear set of goals. </li><li class="mc-my-4"> 2. Open <a href='https://masterclass.com/articles/robin-robertss-tips-for-effective-communication' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/robin-robertss-tips-for-effective-communication","linkCopy":"communication","category":"automated-link"}' automatic='true'>communication</a>: Group members often feel they can freely express themselves, and they respond well to change. They also feel safer <a href='https://masterclass.com/articles/how-to-take-risks' target='_blank' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://masterclass.com/articles/how-to-take-risks","linkCopy":"taking risks","category":"automated-link"}' automatic='true'>taking risks</a> and are more likely to provide honest feedback to leadership. </li><li class="mc-my-4"> 3. Employee retention: Organizations with a healthy culture are more likely to attract elite job candidates and enjoy higher employee retention rates. </li></ol>

3 Benefits of Strong Organizational Culture

In order to learn how to improve your company’s current culture, it’s useful to understand the four types of organizational cultures, as laid out by business professors Robert E. Quinn and Kim S. Cameron of the University of Michigan:<ol class="mc-m-4"><li class="mc-my-4"> 1. Hierarchy culture: The most traditional organizational culture of the four types, hierarchy cultures value organizational structure and control with an emphasis on efficiency, uniformity, and the practice of strict procedures. They also boast a clear chain of command that separates employees from leadership. While there is less room for creativity, a hierarchy culture enjoys clear direction with well-defined objectives. </li><li class="mc-my-4"> 2. Clan culture: Organizations that have a clan culture prioritize collaboration. Clan cultures focus on creating a close-knit, “one big family”-style work environment where teamwork is valued and flexibility and discretion are key. Clan culture is often found in <a href='https://www.masterclass.com/articles/tips-for-starting-a-small-business' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/tips-for-starting-a-small-business","linkCopy":"small companies","category":null}'>small companies</a> and startups. While it can be difficult to maintain this type of culture as an organization grows, companies that encourage a clan culture often enjoy strong employee engagement and an adaptable environment. </li><li class="mc-my-4"> 3. Market culture: The market culture is goal-oriented with a primary focus on profitability. Its leaders are demanding of their employees, and they prize the success of the company over internal satisfaction. Due to every aspect of a market culture being driven by numbers and tied to the bottom line, employees may find it difficult to engage meaningfully with their work. However, this type of culture may come with stability and can lead to success and profitability. </li><li class="mc-my-4"> 4. Adhocracy: The adhocracy culture encourages risk-taking and experimentation. This type of culture is valued by cutting-edge companies that hope to develop the next big innovation. It emphasizes the importance of individual freedom among employees and differentiation in the market. The tech industry typically values adhocracy culture, as tech companies often focus on innovation. While this culture can foster competition among employees, it may also encourage creativity and increase motivation. </li></ol>

4 Types of Organizational Culture

Follow these five steps to begin cultivating a culture in which your employees can thrive:<ol class="mc-m-4"><li class="mc-my-4"> 1. Align your company’s culture with its values. Put your company’s values into practice every day, in all aspects of the organization. Your values should be evident in all company initiatives, including benefits programs and HR policies. </li><li class="mc-my-4"> 2. Ensure that your leaders are on board with the culture. Employees can sense if leadership is not working according to the company’s mission statement or stated values, so it is essential that all senior leaders exhibit the ideal organizational behaviors and promote shared values. They must be willing to openly discuss the culture and ensure that employees have a voice. Leaders set the tone of an organization, and if they exhibit the qualities of a healthy culture, team members will be more likely to do the same. </li><li class="mc-my-4"> 3. Recognize and reward employee contributions. By regularly commending employees for their accomplishments, you enable members of the organization to see how their work affects the organization as a whole. This can help them feel more attached to the culture, and the company may enjoy greater employee engagement, productivity, and retention as a result. </li><li class="mc-my-4"> 4. Include the culture of the organization in the hiring process. When <a href='https://www.masterclass.com/articles/sara-blakelys-tips-for-hiring-a-team' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/sara-blakelys-tips-for-hiring-a-team","linkCopy":"searching for new employees","category":null}'>searching for new employees</a>, it’s important to consider whether or not they match the culture of your organization. Find out why they are interested in working for your company, and determine if they fit your unique culture. During onboarding, the organization’s values should be reinforced. </li><li class="mc-my-4"> 5. Emphasize professional development and learning. An organizational culture that focuses on learning can significantly and positively impact your company. When employees are given access to <a href='https://www.masterclass.com/articles/how-can-soft-skills-help-you-land-a-job' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-can-soft-skills-help-you-land-a-job","linkCopy":"soft skills","category":null}'>soft skills</a> development, they are more likely to be engaged in the company culture. </li></ol>

5 Strategies for Developing a Healthy Organizational Culture

Get the <a href='https://www.masterclass.com/' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/","linkCopy":"MasterClass Annual Membership","category":null}'>MasterClass Annual Membership</a> for exclusive access to video lessons taught by business luminaries, including Sara Blakely, Chris Voss, Robin Roberts, Bob Iger, Howard Schultz, Anna Wintour, and more.

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