A business or corporate culture is the set of attitudes and beliefs that define what the company is really like. It is a major factor in determining what the firm’s atmosphere is and how people do their work.
One of the major components of a business’s culture is its attitude towards hierarchy and division of labor. Some companies are highly hierarchical and bureaucratized. In such companies, there are strict definitions of the responsibilities and duties of the people in the various positions in the firm. People are not encouraged to cross these lines and to take on duties that do not belong to them. In other companies, these boundaries are less strict. In these companies, the main value might be innovation. Such firms are so interested in innovation that they welcome input from a variety of employees on a variety of topics. They do not, for example, expect subordinates to simply carry out orders. Instead, they expect to have a less hierarchical system in which subordinates are willing to think creatively and to make their ideas known to their superiors.
Thus, attitudes towards hierarchy, bureaucracy, and innovation are an important part of corporate culture.