Clan culture: Building organizational unity

Discover the benefits of clan culture in organizations, emphasizing loyalty, teamwork, and flexible management. Learn how this collaborative environment enhances employee engagement and organizational success.

By Brad Nakase, Attorney

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What is clan culture in an organization?

Strong employee engagement and effective teamwork are key factors that influence both individual and organizational performance. They are also the main features of what we call clan culture. This article will teach you everything you need to know about organizational clan culture and how to encourage its positive elements in your company.

Clan culture is a term for a certain kind of corporate culture that values loyalty, commitment, and participation in order to create a collaborative, family-like atmosphere. Teams of close-knit workers who fervently identify with the organization’s vision and mission and come together around a common goal make up its horizontal organizational structure.

The phrase “clan culture” refers to social groups of individuals who band together due to a shared ancestor or kinship.

This kind of organizational culture allows for flexible management that is not dependent on rigid rules and regulations. Although there are regulations, they are more socially than legally ingrained. Teams make decisions about how to complete tasks independently and with a high level of trust. Workers are at ease discussing ideas and imparting knowledge, and managers actively ask for their opinions.

Small enterprises, start-ups, and family-owned firms with a stronger emphasis on interpersonal ties and an inward gaze are frequently examples of businesses with a clan culture.

Here’s an idea of how one might look:

  • There is a loose dress code and colloquial language used in its operations.
  • Hiring decisions are made based on an employee’s ability to support the company’s goals.
  • Mentoring may be used during the onboarding process instead of following a set of protocols.
  • Owners and upper management are easily accessible to employees.
  • Face-to-face encounters that are not structured are typical.
  • Team members communicate honestly about their flaws in order to share information rather than assign blame.
  • It features a friendly, helpful environment with coworkers eager to provide a hand to one another.

The importance of organizational culture

An organization’s culture reflects the character of that company. It is comparable to how every regional culture represents the particular values and customs that make it up.

The success of a company is significantly influenced by the culture of the business since it determines how people behave, view their jobs, and approach achieving its strategic goals.

Companies rarely fall neatly into a single corporate culture, although they do frequently develop a dominant one. Kim Cameron and Robert Quinn recognized four categories of organizational culture, and this prevailing culture typically falls into one of them.

The culture types are categorized as follows by the Competing Values Framework:

  • Clan culture: Work as a unit
  • Adhocracy culture: Be the first to do things
  • Hierarchy culture – Do things correctly
  • Market culture: Do things fast

Defining the culture of your organization can be very beneficial. By doing this, you may find out if it’s communicating the right message to help you achieve your business objectives.

Important elements of clan culture

Clan cultures are like families in which all members stick together as a single, cohesive unit. Businesses that have a strong clan culture typically exhibit the following characteristics:

  1. Participation as well as effective teamwork

Teamwork is highly valued in clan cultures since they are built on trust and collaboration. Individuals contribute to the business outside of their designated roles in order to come up with ideas and consider solutions from several angles. Strong relationships between coworkers enable them to operate effectively as a team and put in a lot of effort to achieve objectives.

 

  1. Horizontal structure and informality

The framework of the organization is usually flat, so there are few barriers between different categories of employees. The management will provide nurturing leadership and views their staff as family. Also, because they manage many responsibilities, employees’ roles may not be clearly defined.

  1. A feeling of inclusion

People feel that they are a part of something bigger than themselves when they are integrated into the business. They are very emotionally bonded to their coworkers and the mission and values of the company. Additionally, there is an underlying understanding of competitiveness with other companies and allegiance to the corporation.

  1. Strong bonds

Workers are more devoted to one another than they are to outsiders and collaborate closely as a team. Team members frequently refer new hires, who then join the company with existing connections. Colleagues socialize outside of work hours and spend a lot of time together. Employees frequently serve as mentors to one another.

  1. Dedication to staff members

Clan culture prioritizes the well-being of its workforce, offering a supportive atmosphere that fosters employee development and mentorship. Ensuring that workers have what they need to be happy and safe in their work environment is a priority.

Benefits of a clan culture

For certain companies, clan culture works exceptionally well because of its tribe-like characteristics and lower levels of internal rivalry. Its strengths can lead to the following advantages:

  1. A positive work environment

People feel valued and at home when an organization prioritizes their happiness and well-being. This lifts spirits and encourages the development of a laid-back, happy work environment.

A culture of family-like camaraderie is fostered by coworkers who hold a common set of values and who perceive themselves as a cohesive unit. This is maybe the best possible work environment for many people.

  1. Honest dialogue

Frequent check-ins are a feature of clan cultures, much like how a family might catch up over supper. Open meetings, employee surveys, and one-on-one conversations are typical. Everyone is informed about business messages and happenings and has a voice.

Sincere suggestions and criticism are appreciated, and problems are resolved quickly and cooperatively. Employee trust in managers and other employees is strengthened by openness and transparency. It also lessens grumbling and rumors.

  1. Employee participation

People want more out of work than just money. They seek to connect with the overarching goals of a company. Employees that are proud to be a member of the team feel more connected to their coworkers and the company’s values.

When workers are motivated, they will put in more effort and go above and beyond what is required of them. Happy and committed staff members, on the other hand, work well and come up with innovative ways to please customers.

  1. Commitment

A culture of cooperation that feels like a family fosters a sense of loyalty. Employees remain loyal to their coworkers and their employer. This implies that they are likely to back the company and contribute to its success.

Loyal workers tend to stay on. They don’t feel the need to look for work elsewhere because they are content and feel safe where they are.

The drawbacks of clan culture

There are disadvantages to a clan culture, even though it can make for an extremely productive workplace. Among the potential drawbacks of clan culture are the following:

  1. Being homogeneous and exclusionary 

Organizations with a clan culture may be elitist. They might be wary of strangers and hesitant to accept suggestions from outside sources that could help the business grow. Referrals alone may lead to a lack of diversity in the employment process.

When new hires do arrive on the scene without any connections, they may find it difficult to fit in with the teams that have already developed such close relationships. People may argue with each other if they are having problems fitting in with the clan.

  1. Absence of authority and structure

Ineffective decision-making may result from an unclear chain of command. Mid-level executives might not be aware of when to make their own decisions on pressing matters if management is completely top-down.

Coaching and good communication between executives and staff members work best when clear boundaries are established. It is hard to enforce authority when the boundaries are blurry.

Some workers may take advantage of flexible rules and jobs as a way to avoid performing unpleasant tasks if they haven’t yet formed a deep sense of devotion to the organization. Furthermore, in a casual setting, clever repartee and jokes can easily turn into teasing and other rude and improper actions due to misinterpretation.

  1. Too much collaboration 

Having open lines of communication and giving everyone a say in decisions could end up working against you. It may lead to overloading meetings and postponing important choices. Group discussions aren’t always possible, and good ideas risk being shot down if the majority doesn’t see their value.

  1. A groupthink atmosphere 

Individuals with comparable values, beliefs, and demographics are likely to hold similar views and perhaps even share incorrect assumptions. The organization loses out on the advantages that differing viewpoints can provide when everyone has the same perspective.

Additionally, because the group is so close-knit, workers may experience pressure to fit in and keep the peace. Reluctance to speak up against the status quo and question the group mentality stifles new ideas and creativity.

How can HR promote clan culture?

Creating a positive workplace culture will benefit your company. The strong sense of belonging, teamwork, and collaboration found in clan culture may be helpful to the teams in your company.

Let’s explore some strategies for fostering certain elements of clan culture and changing the culture of your company:

  1. Establish trust 

Trust between staff members and their managers is necessary to create a productive workplace where team members may flourish. Supervisors must have faith in their subordinates as well. Here are some ideas to support this:

Urge supervisors to spend time getting to know the members of their teams. Genuine interest in each other’s projects and lives outside of work can strengthen relationships. They should also be aware of how effectively new hires are integrating into the company and give them a special welcome.

Ensure that CEOs are visible and available to employees on a regular basis. To establish them as someone the staff can relate to and interact with, ask them to attend team meetings or make themselves available for casual get-togethers.

Advocate for highlighting successes and minimizing failures. Rather than assigning blame, leaders ought to treat setbacks as teaching moments. They shouldn’t be afraid to acknowledge and talk about poor business judgments. Reward and acknowledge those that solve problems well or go above and beyond expectations.

  1. Establish shared team awards 

Shared team rewards can encourage employee synergy for improved teamwork, just as individual rewards can inspire workers and increase morale and loyalty. Annual recognition ceremonies, prizes, and incentives based on team success are a few examples of this kind of motivation.

The intended performance or output must rely on everyone’s efforts for these to be effective. Furthermore, the awards’ performance criteria have to be founded on objective, unambiguous standards.

  1. Encourage a culture of feedback

Find several ways to encourage transparency, feedback, and suggestions within your teams; a clan culture accepts them all. Here are some suggestions:

Arrange for brainstorming meetings.

Request feedback on suggestions, etc.

Managers should be urged to actively listen to their staff members and value their opinions.

Respond to comments, and then let others know about the choice or adjustment you made.

Offering a multitude of feedback channels to staff members enables them to select the one that best suits their tastes. In order for them to feel comfortable enough to be open and honest, they also need to know that speaking their opinions won’t have any negative consequences.

  1. Encourage relationships among staff members

Employees collaborate more effectively when they have a sense of belonging. The following are some suggestions for motivating team-building exercises:

  • A micro-mentoring program.
  • Teams for special projects.
  • Organized team-building activities.
  • Team game competitions.
  • Lunch dates where work is not discussed.
  • Team volunteering workdays.
  1. Promote a stronger sense of inclusion

By being aware of the organization’s mission and how they fit into it, workers will feel more a part of their company. Finding strategies to connect staff members with the goals of your company is crucial if you want them to feel like they belong.

Managers must intentionally ensure that every employee feels heard in addition to recognizing and responding to their feedback. This involves approaching individuals who tend to remain silent in a group and asking for their opinions or providing them with a designated platform to express their thoughts.

It’s also necessary to provide gig and remote workers a sense of belonging. Remember to invite them to as many team or workplace gatherings as you can.

In conclusion

The culture you create will determine who your business can hire and retain. Businesses of all sizes are attempting to foster a more familial atmosphere throughout their organization, which explains the rise of clan culture.

Creating cohesive teams among employees will help the company succeed in the long run by fostering a sense of belonging.

Have a quick question? We answered nearly 2000 FAQs.

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