What is business culture and why is it so important?
Business culture is the set of basic considerations and shared beliefs by members of a company.
Each company has some values, beliefs, standards, philosophies and ways to act different. We say that business culture represents the values of the company, what moves it and what determines the relationship between its members. That is to say, in a certain way it is the way in which a company behaves on a daily basis. These ways of acting and beliefs that go beyond processes, sales promotion and production, are business culture.
Not all companies are the same or behave in the same way, so we say that each company has its own business culture.
Elements of business culture
Business culture is comprised of different elements. These are: communication, vision, values, organizational structure and human talent.
Different elements of business culture
1. Communication
Good communication is essential to be able to achieve all those objectives that the company has set for itself. The communication tells us how to Exchange information within the organization, that is, what are the workflows and structural. In addition, it also helps us to Relate to the environment and to be able to extract from it those resources that we think are necessary. Finally, good communication should also involve the target audience of the company, not only to know what it wants, but also to transmit the values of the company and the other elements of business culture.
2. Vision
The vision is that inspirational image in the long or medium term that serves as guides for the company, that is, mark where you are and Where do you want to go. It is not really a planned objective, but rather it marks where you want to go and from there, more concrete objectives will emerge that the company will pursue to get where it wants to. The vision is an inspirational image that is not 100% definite, because We can redefine it as we search for the objectives. We can say then that the vision Set the direction of the company, so it's a fundamental pillar of corporate culture. It not only marks and guides the decisions that managers will make, but it guides employees to achieve the organization's objectives.
3. Values
La basis of business culture are the values of the company. These present a behavioral regulations and they shape the mentality of workers. We can then say that the values of the organization are what It guides the attitudes of workers and the decisions of managers, those resolutions That they keep them linked to common objectives. In addition, the values of a company help the customer to trust the brand, thus supporting those values that they consider appropriate.
Business values are then the ultimate expression of a company's mission and vision.
Some examples of company values: integrity, determination, innovation, respect, etc.
4. Organizational structure
The organizational structure of the company has a great impact on the company's business culture. If the business structure is too much rigid The company usually has very strict rules and procedures than They limit interactions between the different sectors and subsystems of the company. On the other hand, if the company's organizational structure is flexible, facilitates communication between the different subsystems, thus achieving a greater understanding and reducing the risk of errors due to lack of communication.
5. Human talent
Human talent forms an essential part of business culture, but it is also true that a company's business culture is mostly constituted by corporate culture of this same, which is shared and built by workers. It is for this same reason that companies are no longer only looking for talent or training in the sector, but they also want professionals who share the values and vision of the company, and who are excited to be part of it.
Types of business culture
We find a large typology of business cultures, the most prominent of which are the following.
Different Types of Business Culture
- Power-oriented or authoritarian organizations: The highest representatives of the organization are the center of authority, from which the different orders that will guide the workers emanate. Those in power have absolute control over the company's processes and over the company's employees. Its objective is to dominate the organization and overcome obstacles without being subject to outsiders.
- Standard-oriented organizations: The main objective is to achieve stability and security through compliance with current regulations.
- Results-oriented organizations: It seeks to achieve the objectives set with the highest possible profitability, through the full optimization of the company's resources and maximum efficiency within it.
- People-oriented organizations: It is aimed at ensuring the needs of all components of the company. It is based on trust within the organization and on support among its members.
- Motivational culture: Its objective is the motivation, inspiration and happiness of the people who constitute the company, since it is considered that the more motivated the workers are, the better they will perform their functions and the better the results of their work will be.
- Culture by objectives: In this typology, the company's objectives are the goal to be pursued. The company's mission is completely aimed at these objectives, as are the processes that are carried out in the company. Good results are required and we seek to participate in the competitiveness of the sector, which is why success is essential to achieve the objectives.
Why is company culture important?
Company culture has become one of the main issues of concern for any department of human resources managers, and this is because, for the company to function at its maximum efficiency, it must have a well-defined organizational structure (and therefore an organizational or business culture), where values are perfectly recognizable.
A good business culture is essential because it is the fundamental pillar that ensures achieving the objectives set out in the company's mission. It provides guidance to workers on the actions and values they should follow and carry out and helps employees to work within common parameters.
Thus, we can conclude that any company that wants to achieve its full potential must first establish a good business culture, which will mark the actions that must be followed to achieve the organization's objectives.
