When a company has a well-defined route for its workers to follow in terms of values, aspirations, and activities, it's regarded as having a strong organisational culture. Accurate and dependable organisational culture demonstrates forceful features that contribute to the firm's success. Firms that are lucrative and successful in nature might be scuppered by a flawed or misdirected corporate culture. From timeliness to contract conditions to employee perks, an organization's culture shapes how business gets done. Organizational culture has an impact on employee morale and productivity by creating an atmosphere of comfort and support for employees (PAAIS et al., 2020).


Aspects of Organizational Culture

Organizational culture has a set of characteristics. Using the notion of corporate culture, businesses want workers to be focused, precise, and insightful. Employees or workers in a company benefit from a company's culture by being more result-oriented, as discussed by Elsbach et al. (2018). Each company has its own definition of organisational culture. Listed below are a few aspects of corporate culture:

People Oriented

In keeping with the name, these companies place a high value on their personnel. Bonuses, rises in pay, and other accolades are among the many perks available to workers at this particular firm. Work-life balance is easier to maintain when this part of company culture is in place. As a result, these companies are very popular (Tasci et al., 2021).

Result Oriented

Firms that are only focused on the bottom line adhere to this facet of corporate culture. The approach used to get these findings has no bearing on them. When it comes to the art and entertainment industries, traditional methods have been replaced by new ones that concentrate only on outcomes. These groups encourage the development of new ideas. As a result of the ongoing pressure on workers to be creative and productive in companies with these environments, employee happiness remains minimal.

Rule Oriented

In a rule-oriented environment, the behaviours of employees are guided by a precise set of rules. Each employee of the firm has to follow the regulations and rules that were created from the beginning of its existence. These laws and regulations have no wiggle room in their implementation. Bureaucratic structures like those seen in the public organizations are widespread in these organisations. In such a company climate, innovation is given a low priority, and even the simplest tasks are carried out in a laborious manner. While this kind of company has a low profit, it is very productive. Companies that are vulnerable to market fluctuations must refrain of this aspect of company culture (Grill et al., 2017).

Details Oriented

This component of company culture is characterised by high levels of customer satisfaction & meticulous attention to detail. In industries such as hospitality or e-commerce, this sort of corporate culture is commonplace. High profitability and customer happiness may be achieved by adopting this sort of culture.

Collaboration Oriented

As per Wei et al. (2019) these companies are characterised by a strong emphasis on teamwork, with intimate ties amongst staff. These companies have a welcoming and supportive atmosphere. Firms that adhere to this component of organisational culture pride themselves on having workers that are committed to teamwork and collaboration.

Structure of the Organisation

When it comes to judging the organization's culture, the organizational structure is a critical factor. According to the sort of decision-making channels or connections they have, various organisations have diverse cultures.

Competition Oriented

The fundamental characteristic of companies that adhere to this component of corporate culture is that they eliminate the advantages of competitors. There is little regard for norms and regulations in the light of the strong rivalry according to Kargas et al. (2015) faced by the enterprises, which is known as aggressive corporate culture. Microsoft and other companies like it have a competition-oriented environment.

Innovations Oriented

Innovativeness & adaptability are the hallmarks of these organisations, which are continually adapting to new ideas. In these companies, there is no distinction between levels of authority; everyone is on the same playing field. This component of corporate culture is followed by firms like Google.

Patterns of Communications

Various organisations have different approaches to information flow. Relationships & interactions between workers of a company (Muszy?ska, 2016) are determined by the company's corporate culture.

Conflict Management

Different organisations use a wide range of dispute resolution strategies. An organization's culture greatly influences how it handles employee disagreements.

Degree of Support by Management

In certain companies, management is tasked with offering assistance to workers while they go about their daily tasks (Pathiranage, 2019). In other companies, it might not be the case. As a result, the character of management is an important influence in the success of the organization's culture.

Charles Handy’s Four Types of Cultures

In terms of Organizational Cultures, this model has a high degree of generalisation and simplicity. In the model as mentioned by Deardorff, (2018), the four distinct cultures of a corporation are combined to generate the corporate culture. In a hierarchy of complexity and decreasing tangibility, these four kinds depict the workings of a corporation.

Power Culture: This sort of culture refers to a certain organisational structure in which the leadership is in charge of making decisions and directing the organization's activities. Since this kind of work environment is most common in smaller companies, a steadfast leader is essential.

Role Culture: A company with this sort of culture has a well-organized shape and standard operating procedures. It's the most typical kind of workplace culture, in which workers are aware of the role, report to their managers, and place a high value on productivity.

Task Culture: This sort of culture characterises organisations that prioritise cooperation based on problem solving. Teams cooperate to solve these problems or carry out these jobs, resulting in the formation of matrix structure wherein small teams cooperate on a number of critical responsibilities.

Person Culture: Firms with a horizontal structure tend to have a culture like this, where people and employees are prioritised. Many drawbacks may be seen in these companies owing to the opposing natures and ambitions of various individuals.

Organisational Culture in Contemporary Firms

Task Culture and Practice in Contemporary Firms

Bhardwaj et al. (2021) stated that this is a work environment that emphasises the importance of completing specified projects and tasks. People are brought in on a project-by-project basis, collaborating with colleagues from other departments. Design and advertising firms, for example, may be afflicted by this culture. Considering the contemporary firms Unilever is a good example which uses such culture and employee activities are the emphasis of Unilever's performance-oriented culture. In addition, it places a high value on the product's overall quality in all of its endeavours. In addition, there is a strong emphasis on improving efficiency via the use of technologies and other means. The company has grown tremendously from a modest firm to a multinational corporation. Because of the high performance level in the company culture and the strong work ethic, Unilever has been able to reach remarkable heights. Despite the fierce rivalry, consumer goods companies continue to dominate their respective markets. As a result of their efforts, the company's executives and other stakeholders, such as HR managers, had a significant effect on its success. Market-oriented and results-oriented methods drive the company's development.

The company's operational practises encourage efficient use of resources & high levels of performance. The organization's structure is supported by the firm's leadership and organisational structure. When it comes to the company's culture, they constantly analyse its performance. However, Unilever's Organizational culture has space for improvement through improving policies to encourage diversity (Austen-Smith et al., 2017) and the adoption of information technology. For example, the adoption of technology may greatly help market research, customers’ satisfaction & internal communications, thereby strengthening the company's culture. Having a strong corporate culture helps the company's operations run more smoothly and reliably. As a result, the interests of a wide range of parties, including investors, customers, suppliers, and workers, are promoted and enhanced as a result of an effective corporate culture.

Power Culture and Practice in Contemporary Firms

In a Power Culture, decision may be taken fast, which is a benefit, however, decisions are directly influenced by the calibre of those making them as per Gibbons et al. (2020). An important example of such culture is Sainsbury’s corporate culture. Sainsbury's business culture places a premium on meticulousness. Sainsbury's has to pay greater attention to the views of its employees while developing its worker community. To acquire insight into worker views and establish a culture that may fulfil their expectations, it will solicit feedback from its employees. This will encourage and influence them to perform better and give their best. Work specialisation should be imposed more severely, but only after a comprehensive evaluation of the workers' talents must they be split. Too much focus on results may lead to a dictatorship in the workplace, where people' expectations and emotions are ignored. There must be a reasonable basis for making decisions; excessive workload may demoralise employees, causing them to lose motivation. In order for staff to become more result-driven, the company must set precise and realistic objectives for them to attain. Workers might be inspired by the notion that the company cares more about them because of their orientation.

However, businesses must exercise caution when relying on the alignment of so many individuals since doing so might impede operations. Using a cost-benefit analysis, an organisation may determine whether or not taking a risk is even feasible. Employees may be impacted by the company's assertiveness or consistency by its actions and attitudes, but the costs of innovation must be addressed. The aggressive power culture should be minimised in order to motivate employees more successfully. The aggressiveness & productivity of the company might have an impact on the attitudes and behaviours of workers (Stojanovi? et al., 2020).

Role Culture and Practice in Contemporary Firms

Turner, (2017) mentions that there are a lot of rules and regulations concerning how employees in the organisation interact with one other, as well as with suppliers and customers, in organisations with a strict "role culture." This culture is a need for large, well-established organisations like insurance corporations and banks. On such contemporary instance is a culture embraced by Tesco. By ensuring that the right personnel and processes are in place with each worker, the company attempts to increase customer satisfaction. It is outlined in the Handy model that organisations use knowledge they have gathered and used to explain their corporate practises that empower people with an efficient work culture. Consider how well the company's employees and contractors are doing. A well-balanced company culture may frequently promote individual activities.  A company's role culture benefits when its employees are adequately motivated. As a result of Tesco's role culture, every employee is treated with the same amount of devotion and respect. The consequence is that the majority of roles are constructed to fit a certain set of talents.

The corporate role culture described in Handy's model includes, among other things, a specified technique, a regulated activity, a sorting job, tracking, personnel selection, output value management, and so on.  Information exchange is the initial step in a company's culture of sharing information with other employees in the same position. Because of HRM, every employee in the company has a sense of belonging to their company, which improves performance. Tesco implemented a reward scheme to encourage employees for their hard work & achievement in order to control the flow of information. In order to keep workers engaged in Tesco's organisational activities, the company sets short-term goals and recognises each employee's contribution to the company's operations (Perks, 2010). On the other hand, the company has a reputation for conducting fair evaluations of all positions, and employees may increase their performance value as a result.

Implications of Organizational Culture on Organizations and Stakeholders

The culture of a company determines the kind of atmosphere in which the company is run and, therefore, whether or not it is successful. All staff employees should be made aware of the organisation’s goals, vision, and objectives while they are being formed and maintained. It is possible for a company's culture to act as a catalyst for improving the way workers interact with one another. According to PAAIS et al. (2020) when combined with a nice atmosphere, it may help create repeat business from clients who like interacting with the company's staff and suppliers alike. Simply said, corporate culture encompasses more than an industry's mission and values. It's more important, in my opinion, to create an atmosphere than to put in place certain policies. In terms of the organization's performance, it has a huge effect and is significantly impacted by the leadership style.

People who desire to work or even do business with the organization are drawn to companies with a positive corporate culture. Workplace happiness and productivity may improve as a result of this strategy. It may even be the best recruiter, bringing in the best and the brightest. To get the most out of the market, an organizational climate must be solid, widely dispersed, and reinforced. Everyone must be able to express their opinions and ideals. Employees who work in a company with a positive work environment are more likely to succeed. Rather than feeling helpless, they are able to exert some influence on their work. Employees who feel appreciated and empowered to make their own choices are more likely to perform at the highest level, regardless of how they choose to work. Opportunities for promotion are greater for those who perform for organisations with a good corporate culture. Employee motivation may be maintained and improved by providing opportunities for advancement, career growth, and/or further training (Chua et al., 2014). It's easier to accomplish corporate objectives when everyone is on the same page.


The effective organisational cultures guarantee that the organisation is steady and that their staffs are well-coordinated & happy. Enhancing the pleasure and happiness of workers will enhance the productivity of the organization. Increases in customer happiness, profitability, and the efficiency of the business's operations are all positive outcomes of this strategy. Charles Handy's approach, which was mentioned in the article, is only one of several methods for analysing the business culture of a sector of businesses. In addition to Edgar Schein's concept & Hofstede's model, organisations may utilise these methods to analyse their business culture. Organizations like Unilever, Sainsbury as well as Tesco have also been subjected to Handy's approach for an investigation of how organisational culture impacts the company's operation. These organisations' employee behaviour norms have had a significant impact on their company, both in terms of profitability and customer happiness. When it comes to an organization's culture, it can be argued that its workers' expectations, experience and thought processes are all factors that contribute to it.


Austen-Smith, D., Galinsky, A., Chung, K. and LaVanway, C., 2017. Unilever's Mission for Vitality. Kellogg School of Management Cases, pp.1-13.

Bhardwaj, B. and Kalia, N., 2021. Contextual and task performance: role of employee engagement and organizational culture in hospitality industry. Vilakshan - XIMB Journal of Management, 18(2), pp.187-201.

Chua, R., Roth, Y. and Lemoine, J., 2014. The Impact of Culture on Creativity. Administrative Science Quarterly, 60(2), pp.189-227.

Deardorff, D., 2018. Exploring the Significance of Culture in Leadership. New Directions for Student Leadership, 2018(160), pp.41-51.

Elsbach, K. and Stigliani, I., 2018. Design Thinking and Organizational Culture: A Review and Framework for Future Research. Journal of Management, 44(6), pp.2274-2306.

Gibbons, R. and Prusak, L., 2020. Knowledge, Stories, and Culture in Organizations. AEA Papers and Proceedings, 110, pp.187-192.

Grill, M., Pousette, A., Nielsen, K., Grytnes, R. and Törner, M., 2017. Safety leadership at construction sites: the importance of rule-oriented and participative leadership. Scandinavian Journal of Work, Environment & Health, 43(4), pp.375-384.

Kargas, A. and Varoutas, D., 2015. On the relation between organizational culture and leadership: An empirical analysis. Cogent Business & Management, 2(1), p.1055953.

L.Pathiranage, Y., 2019. Organizational Culture and Business Performance: An Empirical Study. International Journal of Economics and Management Studies, 6(6), pp.1-12.

Muszy?ska, K., 2016. Towards project communication management patterns. Zeszyty Naukowe Uniwersytetu Szczeci?skiego. Studia Informatica, 40, pp.113-121.

PAAIS, M. and PATTIRUHU, J., 2020. Effect of Motivation, Leadership, and Organizational Culture on Satisfaction and Employee Performance. The Journal of Asian Finance, Economics and Business, 7(8), pp.577-588.

Perks, R., 2010. The Roots of Oral History: Exploring Contrasting Attitudes to Elite, Corporate, and Business Oral History in Britain and the U.S. The Oral History Review, 37(2), pp.215-224.

Stojanovi?, E., Vlahovi?, M., Nikoli?, M., Miti?, S. and Jovanovi?, Z., 2020. THE RELATIONSHIP BETWEEN ORGANIZATIONAL CULTURE AND PUBLIC RELATIONS IN BUSINESS ORGANIZATIONS. Journal of Business Economics and Management, 21(6), pp.1628-1645.

Tasci, A., Uslu, A., Stylidis, D. and Woosnam, K., 2021. Place-Oriented or People-Oriented Concepts for Destination Loyalty: Destination Image and Place Attachment versus Perceived Distances and Emotional Solidarity. Journal of Travel Research, 61(2), pp.430-453.

Turner, A., 2017. How does intrinsic and extrinsic motivation drive performance culture in organizations?. Cogent Education, 4(1), p.1337543.

Journal of Interprofessional Care, 34(3), pp.324-331.


Related Post

Integrated Professional Skills in Digital Age

In terms of ICT, any digital technology that facilitates the acquisition and use of information by i

Introduction of Primark

Retailer Primark specializes on apparel, accessories, and footwear, and is one of the largest in the

Goals have a clearly established goal for the company

a healthier lifestyle has been developing, including customer goods and services. Governments and NG

Chat With Us +44-20-4520-0757