Business Culture

Understanding Business Culture

  • Business culture refers to the fundamental values, norms, beliefs, and practises that characterise the behaviour of an organisation and its employees.

  • It shapes every aspect of a company, from decision making to communication, from the relationship with stakeholders to the company’s public image.

Types of Business Culture

  • Power Culture: This type of culture relies on central source of power which makes major decisions. Valued traits are quick decision making and high risk taking.

  • Role Culture: Here, the organisation is divided into various functions, and roles are assigned accordingly. Employees are expected to perform within their allotted role. Stability, predictability, and efficiency are valued in this culture.

  • Task Culture: Task culture is project-oriented. It often manifests where teams are established to complete particular tasks. Teamwork and achieving objectives are valued.

  • Person Culture: In person culture, the individuals are the focus, and they have the autonomy to decide how work is to be done. Expression of self and creativity are often valued.

Effects of Business Culture

  • Business culture impacts employee morale and productivity. A positive and supportive culture boosts morale, leading to higher performance levels.

  • It also impacts the public image of the business and its relationship with stakeholders. A culture that emphasises ethical behaviour and transparency, for instance, builds trust among consumers and strengthens relationships with suppliers and partners.

Promoting a Positive Business Culture

  • Effective Communication: Promote an environment where employees and management can communicate openly and honestly.

  • Recognising and Rewarding Effort: Acknowledging employees’ effort and accomplishments raises morale and promotes a culture of recognition and appreciation.

  • Encouraging Professional Development: Opportunities for training and advancement help to foster a culture that values skill building and continuous learning.

  • Ethical Behaviour: Encourage ethical behaviour, such as honesty and respect for others, to cultivate a culture where ethics are valued.