Business Culture: What It Is, Types, And Parts That Form It
The field of business and organizations is constantly evolving. Social and organizational psychology, among other things, is responsible for studying all these changes. An important phenomenon within this area is business culture, which consists of the set of values and behaviors that define a company.
In this article We will know what exactly business culture is what components make it up, what types exist, how it is transmitted among workers and what elements are needed for a cultural change to occur in organizations, a process that is often necessary to continue growing.
Company culture can be defined as the personality of a company. Collect all those values, processes, knowledge, techniques, attitudes and policies that the company considers as defining and identifying the organization itself It is, in a way, the “philosophy” of the company.
All these elements allow the achievement of the company’s objectives, and many experts consider the business culture as “the DNA of the company”, since it contains, as we said, its identity.
Nowadays, more and more companies, managers and professionals consider business culture as the most important part for a company to function even beyond your strategy or operating model.
That is why more companies now choose to define a good business culture, one that is known, accepted and shared by all their workers and positions. The objective of a good company culture is that all members of the company feel it as their own and share its values.
can we talk about two major types of business culture, although there are more: strong and weak culture
In the strong, the business culture is accepted and followed with determination by the workers; In the weak one, on the other hand, the workers do not assume the business culture that the organization proposes (its values, norms, behaviors…). In fact, they perceive these elements as taxes.
Culture change
Sometimes, many companies are forced to make a change in corporate culture. But when does that happen? When the organization’s behavior and values no longer serve to achieve its objectives.
Thus, the business culture It must always be updated, in constant evolution Later we will see what elements are needed to produce a change in business culture.
How is it transmitted?
Business culture transmitted primarily through organizational communication There are different types of organizational communication (formal, informal, ascending, descending…) that enable multiple forms of social interaction and transmission of information. These interactions will allow the company culture to be known and reproduced.
In this way, when a new person joins a company, the most normal thing is for him or her to learn the appropriate language and behavior within the group of co-workers, listening to the stories and “legends” of the company and observing the rituals. and rituals of the organization.
All of this (language, behavior, rituals…) is also part of the business culture, and is what the person will come to know and assume throughout their time in the company and the development of their work there. That is why the ideal is for this knowledge to be promoted, so that the worker ends up being a real part of the company
There are various elements that make up business culture, and several experts have made different proposals in relation to them. We are going to know two proposals:
1. Proposal by Edgar Shein
Edgar Shein, social psychologist and author of Organizational Culture and Leadershipproposes three elements that make up any business culture:
1.1. Unconscious assumptions
These encompass the how people and workers see the company from the outside (and from within), what they think of it, what beliefs they have, etc.
1.2. Values
They are made up of the rules that should guide the behavior of workers as well as its principles and models to follow.
1.3. Artifacts
The third component of any business culture, according to Shein, would be the artifacts, that is, the results that the company obtains through its actions
2. Proposal by Stephen Robbins
Stephen Robbins, writer and author of works such as Organizational behaviorproposes 7 other elements as members of any business culture:
2.1. Individual autonomy
Consists in the level of independence and participation that the company itself has
2.2. Structure
The structure includes the norms that govern the behavior of workers and the rules that define how the company operates. Also includes the degree of control exercised to ensure that standards are met
23. Support
It is about the support and help that workers and their superiors provide to each other, and includes the type of relationship they maintain.
2.4. Identity
Identity as part of business culture refers to the fact of feeling part of the company (it is a sense of belonging to it). It is the way in which workers perceive the company as a whole and not in a fragmented way.
Recognition has to do with the rewards or positive reinforcement that employees receive for a job well done and for their contributions to the company, on behalf of the organization.
2.6. Conflict tolerance
It refers to the company’s ability to face obstacles and difficulties that are presented in the achievement of their objectives.
2.7. Risk tolerance
The last component of the business culture that S. Robbins proposes is risk tolerance, a concept that refers to creativity and innovation very positive aspects to implement in the company.
Business culture change
As we mentioned at the beginning of the article, sometimes companies They need to make a cultural change, because their current system does not work There are 4 features that facilitate and enable this process of changing business or organizational culture. These traits or conditions are the following:
1. Strong leader
A strong leader who can initiate and maintain business change is essential. Leaders are key figures in any change process who contribute ideas and lead a team through motivation, enthusiasm and experience.
2. Vision of what needs to be done
Another condition that is needed to produce a cultural change in the company is a vision of what needs to be done to achieve said change. This vision implies the belief of what the new culture will be like, and must be well defined.
3. New work procedures
The development of new work procedures is also necessary that help break fidelity with old values, and establish new ones
4. Open organization
Finally, an organization open to learning, adaptable to change and constantly growing, will allow it to successfully carry out the business culture change that the organization needed to continue growing.
