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Company Culture Examples | Best Practice in 2024

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Astrid Tran 31 October, 2023 9 min read

Are you working out a strong culture suitable for your company? Check out the best company culture examples and practices in this article.

company culture examples
Company culture examples - Source: Freepik

When you ask people about their company culture, there are tons of different answers. Apple is an excellent example of positive transformation in organizational culture which highlights innovative and customer-oriented culture.

However, a strong company culture might not necessarily come from the most successful, largest, or richest corporation, there are plenty of entrepreneurs, small and mid-scale businesses that offer a strong and positive company culture.

There are some common traits among businesses that share a strong company culture, and you will learn more about detail in the article

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What is Company Culture?

Company culture refers to the shared values, beliefs, attitudes, behaviors, and practices that shape the way people work and interact within an organization. It encompasses the organization's mission, vision, and core values, as well as the ways in which people communicate, collaborate, and make decisions.

Company culture can be seen in the way people dress, the language they use, the way they approach their work, and the relationships they form with their colleagues.

Why is a Strong Company Culture Important?

Company culture is an essential component of organizational success, as it shapes the way people work together to achieve common goals, and can have a significant impact on employee satisfaction, productivity, and retention.

  • Attracts and retains employees: A positive and inclusive company culture can attract top talent and increase employee retention. When employees feel valued and appreciated, they are more likely to stay with the company for the long term.
  • Boosts employee morale and productivity: A positive culture can create a sense of community and belonging among employees. This, in turn, can boost morale and productivity, as employees feel motivated to work harder and contribute to the success of the company.
  • Defines the company's values and mission: A strong company culture can help define the company's values and mission, which can guide decision-making and help employees understand the company's goals and objectives.
  • Improves customer relations: A positive company culture can also improve customer relations. When employees are happy and engaged, they are more likely to provide excellent customer service and represent the company in a positive light.
  • Builds brand reputation: A strong company culture can also help build a positive brand reputation. When employees are happy and engaged, they are more likely to share their positive experiences with others, which can attract new customers and clients.

4 Types of Company Culture and Its Examples

Clan Culture

This type of company culture is often seen in small, family-owned businesses where employees are treated like family. The emphasis is on teamwork, collaboration, and employee development.

Company culture examples:

  • Offer mentorship programs that pair more experienced employees with new hires or those looking to develop new skills.
  • Empower employees by giving them a greater level of autonomy and allowing them to take ownership of their work.

Adhocracy Culture

Adhocracy Culture is often found in start-ups and innovative organizations that value creativity, risk-taking, and experimentation. Employees are encouraged to think outside the box and challenge the status quo.

Company culture examples:

  • Prioritize flexibility in work arrangements, such as remote work or flexible schedules, to accommodate employees' needs and encourage creativity.
  • Often use rapid prototyping to quickly test new ideas and concepts. This involves creating a prototype or mock-up of a product or service and gathering feedback from customers or stakeholders to refine it.

Market Culture

This type of culture is focused on competition, achievement, and getting results. The emphasis is on winning and being the best in the industry.

Company culture examples:

  • Offer performance-based compensation, such as bonuses or commissions, to reward employees for achieving sales targets or other performance metrics.
  • Operate at a fast pace, with a sense of urgency and a focus on efficiency and productivity.

Hierarchy Company Culture

It is one of the most popular company culture types nowadays, which is characterized by a strong emphasis on rules, policies, and procedures. There is a clear chain of command and decision-making authority is centralized at the top.

Company culture examples:

  • Facilitate performance appraisals to evaluate employee performance and provide feedback.
  • Follow centralized decision-making, with key decisions being made by top-level executives or managers

More Company Culture Examples and Practices

Strong company culture examples - Source: Shutterstock

In a strong company culture, you can see people work and behave in kind of the same way, as they all follow organizational expectations. Depending on the company's mission and vision, along with their career, they will create a unique workplace environment for their employee.

There are more company culture examples as follows, to help you have better approaches to defining your culture:

  • Collaborative Environment: A culture emphasizes collaboration and teamwork, with an emphasis on building strong relationships between team members. Twitter used to be a happy and collaborative workplace before with many social gatherings.
  • Employee Development: One of the positive culture examples, which aims to provide more opportunities for employee development and growth. Google encourages their employees to join training programs, leadership development, or tuition reimbursement for continuing education.
  • Embrace Diversity and Inclusion: Foster an inclusive work environment where diversity is celebrated and all employees feel valued and respected. This can help build a strong and positive company culture, especially for start-up companies.
  • Cross-Functional Teams: An inclusive company culture prefers to facilitate cross-functional teams to encourage collaboration and creativity. These teams bring together individuals from different departments or areas of expertise to work on a specific project or problem.
  • Results-Oriented: The company follows market cultures that are more focused on results and achieving goals. They often set high expectations for employees and emphasize the importance of performance metrics, for example, Microsoft.
  • Standardization of Work Processes is a must-follow principle of all employee work for hierarchy cultures, as they prefer standardized work processes and procedures, to ensure consistency and minimize variation, for example, the international hotel chain like Hilton.

Signs of Bad Company Culture

Bad company culture examples - Source: Shutterstock

There are some bad signs of company culture examples that can indicate a toxic or negative work environment. Here are a few red flags to watch out for:

  • High Turnover Rates: If the company has a high turnover rate or employees are leaving frequently, it could be a sign of a negative culture. It may indicate that employees are unhappy with their work environment, lack of opportunities for growth, or poor management.
  • Micromanagement: If the company's management style is overly controlling or micromanaging, it can create a culture of fear, anxiety, and low morale among employees.
  • Lack of Transparency: If the company lacks transparency in its decision-making processes, it can create a culture of distrust and uncertainty among employees.
  • Toxic Communication: If the company has a culture of toxic communication, such as gossiping, bullying, or backstabbing, it can create a hostile work environment and negatively impact employee productivity and mental health.
  • Lack of Diversity and Inclusion: If the company has a lack of diversity and inclusion, it can create a culture of exclusion and discrimination, which can lead to low morale, poor performance, and legal issues.
  • Low Employee Engagement: If employees are disengaged, it can be a sign of a negative company culture. It may indicate that employees do not feel valued, lack motivation, or do not have a sense of purpose or connection to the company's mission and values.

7 Tips to Practice Good Company Culture

The gap between a company’s goals and employee expectations and experience is not a new concept, it often happens when companies fail to diagnose them at the very first stage, which can lead to a poor workplace culture and internal corruption within the company. It is never too late for the business to make amends by redesigning the company culture. 

If you are seeking advice to strengthen a healthy company culture, here are 8 tips to help you practice it well.

  1. Embrace transparency: Sharing information openly can help to create a more positive and productive company culture, by fostering trust, collaboration, accountability, employee engagement, communication, and conflict resolution.
  2. Prioritize Employee Development: Provide opportunities for employees to develop their skills and grow within the company. This can include training programs, mentorship, or even tuition reimbursement for continuing education.
  3. Hire for Cultural Fit: When hiring new employees, consider not only their qualifications but also whether they align with your company culture. Look for individuals who share your values and will contribute positively to your workplace culture.
  4. Lead by role model: Company culture starts at the top, so make sure that leadership is setting a good example. Leaders should embody the company's values and be role models for their employees.
  5. Recognize and Reward Employees: Recognize and reward employees for their hard work and contributions. This can be through performance evaluations, bonuses, or even a simple thank-you note.
  6. Ask for feedback: Understanding what employees really need is what the strong company culture does. Using different kinds of surveys to address different issues. Using an online survey tool like AhaSlides can help you have higher response rates.
  7. Team-building activities: Social Events and Team-building activities such as parties, picnics, or other gatherings are hosted frequently to allow employees to bond and build relationships outside of work.

Key Takeaways

It is important for companies to communicate their goals and expectations clearly to employees and provide them with the necessary support, training, and recognition to stay positive in company culture. When employees feel valued, motivated, and supported, they are more likely to align with the company's culture and help achieve company goals.

Frequently Asked Questions

What are the 4 common types of company culture?

Here are the 4 most common types of company culture:
1. Collaborative culture
2. Results-driven culture
3. Innovative culture
4. Structured/bureaucratic culture

What is a good company culture?

A good company culture promotes happiness, satisfaction and high performance through mutual trust and support among employees.

How do I describe my company culture?

Think about the values, behaviors, attitudes and atmosphere that best represent what it's like to work there on a daily basis.
Consider using adjectives that convey the tone, pace, priorities, communication style, and how people interact: Do others collaborate or work independently? Is the environment fast-paced or relaxed? Are risks encouraged or avoided?
Take time to capture the essence and you'll eventually find out.

Ref: KnightFrank | BetterUp | HBR