Business culture: what it is, types, and parts that make it up

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 the corporate culture is, what components make it up, what types exist, how is it transmitted among workers and what elements are needed for a cultural change to take place in organizations, a process that is often necessary to follow growing.

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Business culture: what is it?

Business culture can be defined as the personality of a company. Collect all those values, processes, knowledge, techniques, attitudes and policies that the company considers defining and identifying the organization itself. It is, in a way, the "philosophy" of the company.

All these elements allow the achievement of the objectives of the company, and many experts consider the corporate culture as "the DNA of the company", since in it is found, as we said, the identity of the herself.

Today, more and more companies, managers and professionals consider corporate culture as the most important part for a business to functioneven beyond your strategy or operating model.

That is why now more companies choose to define a good corporate culture, which is known, accepted and shared by all its workers and positions. The objective of a good corporate culture is that all members of the company feel it as their own and share its values.

Types

can we talk about two main types of corporate culture, although there are more: strong and weak cultures.

In the fort, the corporate culture is accepted and is followed with determination by the workers; in the weak, on the other hand, the workers do not assume the business culture proposed by the organization (its values, norms, behaviors…). In fact, they perceive these items as taxes.

Culture change

Sometimes many companies are forced to make a change in business culture. But when does that happen? When the conduct and values ​​of the organization no longer serve to achieve its objectives.

Thus, the corporate culture it has to be always updated, constantly evolving. Later we will see what elements are needed to produce a change in business culture.

How is it transmitted?

Business culture is transmitted mainly through organizational communication. There are different types of organizational communication (formal, informal, ascending, descending ...) that allow multiple forms of social interaction and information transmission. These interactions will allow the company culture to be known and replicated.

In this way, when a new person joins a company, it is more normal for him to learn the appropriate language and behavior. within the group of coworkers, listening to the stories and “legends” of the company and observing the rites and rituals of the organization.

All this (language, behavior, rituals ...) is also part of the corporate culture, and is what the person will get to know and assume throughout their time in the company and the development of their work in it. That is why the ideal is to promote this knowledge, so that the worker ends up being a real part of the company.

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Components (edit)

There are various elements that make up the corporate culture, and several experts have made different proposals in relation to them. We are going to know two proposals:

1. Edgar Shein's Proposal

Edgar Shein, social psychologist and author of Organizational Culture and Leadership, proposes 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 do they think of it, what beliefs do they hold, etc.

1.2. Values

They are made up of the rules that should guide the behavior of workers, as well as its principles and role models.

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1.3. Artifacts

The third component of any corporate culture, according to Shein, would be artifacts, that is, the results that the company obtains through its actions.

2. Stephen Robbins Proposal

Stephen Robbins, writer and author of works such as Organizational behavior, proposes 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 rules that govern the behavior of workers and the rules that define how the company works. Also includes the degree of control exercised to ensure that the standards are met.

2.3. Support for

It is about the support and help that workers and their superiors provide to each other, and includes the type of relationship they have.

2.4. Identity

Identity as part of the corporate 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.

2.5. Recognition

Recognition It has to do with the rewards or positive reinforcement that employees receive for a job well done and for their contributions to the company, by the organization.

2.6. Tolerance for conflict

It refers to the capacity of the company to cope with obstacles and difficulties that are presented in the achievement of their objectives.

2.7. Risk tolerance

The last component of the corporate culture that S. Robbins is risk tolerance, a concept that refers to creativity and innovation, very positive aspects to implement in the company.

Change of business culture

As we mentioned at the beginning of the article, sometimes companies they need to make a culture change, because their current system is not working. There are 4 features that facilitate and enable this process of change of business or organizational culture. These traits or conditions are as follows:

1. Strong leader

A strong leader who can initiate and sustain business change is imperative. Leaders are key figures in any change process, who contribute ideas and lead a team through motivation, enthusiasm and experience.

2. Vision of what to do

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 it must be well defined.

3. New work procedures

The development of new work procedures is also necessary that help to break the fidelity with the old values, and to establish the new.

4. Open organization

Finally, an organization open to learning, adaptable to changes and constantly growing, will allow to successfully carry out that change in business culture that the organization needed to continue growing.

Bibliographic references:

• Beascoechea, J.M. (nineteen ninety six). Determining factors of the company culture. Senior management, 188: 289-306.
• Hogg, M. (2010). Social psychology. Vaughan Graham M. Pan American. Publisher: Panamericana.
• Oliveras, E.F. (2018). Business culture: concept, types and components. P&A Group.