Corporate Culture vs Workplace Culture – Crafting the Ideal Office Environment
Corporate culture is something that is often talked about, but when asked to define it precisely most people – even seasoned managers – often have trouble explaining exactly what it is.
Every organisation has a set of values that determines the atmosphere, working style, and daily experience that the business creates for employees. Defining and creating a culture that works for your company’s philosophy and goals is essential – and having the right office in Cape Town can help immensely.
Workplace culture on the other hand means creating a positive and healthy culture for employees based on several major principles that all revert to interpersonal kindness. A positive office environment leads to positive workplace culture which boosts commitment, engagement and performance.
In this article, we take a closer look at corporate and workplace culture and discover you can create the ideal environment for productivity and employee happiness.
What kind of culture does your business foster?
Somewhere between the hours of 9 am and 5 pm, countless employees at offices in Cape Town and around the world go about their tasks with the goal of being more competitive and productive – and in the process, company cultures are born.
Whether your business is a high-pressure, results driven organisation or a family-style operation that values close interpersonal bonds, your distinct culture will determine the type of atmosphere and outcomes that your company produces.
According to management experts, there are four major types of cultures.
1. The Market Culture
This type of business is characterised by a high-pressure approach with an emphasis on results.
- While managers may be available and open for training and support, the onus is usually placed on team members to perform at their best and show tangible objective results to prove ROI.
- Companies like this are often noted for ever-increasing sales figures and competitive operating costs and can be highly effective where the bottom line is concerned.
However, the downside of a high-pressure management style is the toll it can take on employees.
2. The Clan Culture
A business that’s all about team dynamics and fostering a sense of belonging and common purpose fits the description of a clan very well.
- This type of organisation invests heavily in teambuilding and ensuring that employees feel comfortable and inspired to do their best.
- Compared with a market culture, clan-based businesses experience lower turnover rates, following the old adage that people don’t quit their jobs but rather quit their managers.
On the other hand, it may be more difficult to address failures and produce fast results in an organisation that values the feelings and happiness of team members so highly.
3. The Policy Culture
Businesses that operate in highly regulated industries with strict compliance regulations often place policy above both results and feelings.
- Companies in highly regulated industries like healthcare, financial services, and even educational providers need to ensure that they comply with regulations or risk losing their operating licenses.
- As a result, it’s imperative for these businesses to have strict policies and enforce adherence to them with disciplinary action and comprehensive rules-based training.
A policy-based organisation will usually be much less flexible than the other types above, but what it loses in innovation it gains in reliability.
4. The Adhocracy or Create Culture
The adhocracy culture fosters an entrepreneurial type or work environment where employees are encouraged to think out of the box.
- This type of company is driven by innovation and the search to improve and launch new products and offerings.
- It’s typical to find an adhocracy culture in high tech companies with Google being a typical example of a “create culture”.
With so much invested in new initiatives this type of environment lacks stability and can be intimidating for new or inexperienced employees, while entrepreneurial type individuals feel secure in trying new things.
The costs and benefits of company culture for employees
The management philosophy and overall culture of the company can have a huge effect on employee health and happiness, not to mention productivity.
It’s no secret that hugely driven and results oriented organisations often pay a price in the form of regular employee turnover.
This is often explained as a result of workers finding positions in a competitive labour market, but in reality, it’s also because many employees start to suffer from burnout when the pressure becomes too much to handle.
- Research by the Harvard Business Review shows that workers lower down on the power hierarchy at results driven businesses are more likely to develop disease like cardiovascular illness. This is likely due to the huge amount of stress being passed down to workers through upper and middle management.
- Similarly, the number of sick days taken at organisations like this is significantly higher than businesses with a more balanced culture.
- Even if an employee’s physical health is not impaired by their job, mental health challenges can quickly arise when stress levels are consistently high and little to no support is offered by management.
By contrast, a company, culture that emphasises the happiness and health of the team is more likely to have a positive effect on employees’ personal lives and increase chances that staff members will stay with the business over the years.
Policy-based organisations are likely to fall somewhere in the middle of these two extremes, with some types of employees enjoying the certainty that comes from implementing strict rules on a regular basis without the need to spontaneously create results from massive individual effort.
It’s also possible to hybridize your company’s culture by taking elements from each of the various types in order to optimise revenue performance, wellbeing, and reliability.
Whatever type of culture your business ends up creating, one of the first places where it will be obvious is in your office space. Choosing an office design that creates happy and balanced teams is essential in order to remain competitive in today’s economy.
Going beyond corporate culture: creating a unique and supportive workplace culture
The corporate culture that arises from the company’s vision and mission – as well as the values of its founder or current CEO – is usually easy to define. But it’s the workplace culture, with its crucial mix of people and ideas, that truly defines what a company is like to work for.
No matter what type of official culture your business has, the interpersonal culture of your workplace can be tweaked to create an optimal employee experience.
- Even the most results driven business can take a supportive HR approach to create an environment that borrows from policy- and clan-based systems to make employees feel welcome, secure, and taken care of in terms of their professional and wellness goals.
- Managers can contribute to a positive workplace culture by emphasising health and wellness, being flexible with regard to working hours (within limits) and fostering an inclusive culture with a variety of perks that make employees want to be in the office.
A modern, open office layout with multiple areas dedicated to specific tasks can go a long way toward creating a positive company culture.
Based on the old phrase “build it and they will come”, a business that has dedicated areas for both focused, private tasks and social team-based activities will soon find that employees spontaneously gather in certain parts of the office to collaborate and execute their tasks.
The benefits of an inclusive and happiness focused workplace include:
- Productivity. Happy workers will be more likely to stay with the business, gain higher-level skills, and put their all into projects if they feel appreciated and rewarded.
- Reduced absenteeism. Workers who are in good health and enjoy low stress levels are less likely to take days off for health-related leave, thereby boosting productivity even further.
- Genuine respect for management. A team that perceives management as being supportive and mentoring is likely to enjoy higher trust levels, resulting in honesty and a sincere commitment to achieve shared goals and values.
- Alignment with the company’s vision. Employees who feel good about their work and are motivated to come into the office every day are more likely to be on board with the companies, values and strategic goals and do their best to help realise these.
Find your inclusive workspace with us
A Cape Town office space that creates the ideal physical backdrop for excellent management is one of the most important investments a business can make. The Commercial Space team has decades of experience matching dynamic companies with sought after office space in the Cape peninsula. Contact us today to find the ideal premises for your future success.
