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ORGANIZATIONAL CULTURE: Definition, Concept and Models

In the times of competition and immense pressure, organizational culture is given much
prominence because it creates both stability and adaptability for the organization. The
employees’ capabilities must be continually developed, sharpened and used. The organization
design and culture are dominant environmental factors that interact with the personal
cognitions and the behavior. We define organizational culture as a cognitive framework
consisting of attitudes, values, behavioral norms, and expectations shared by organization
members.

Organizational Culture refers to a system of shared meanings held by members of an

organization. The cultural norms are also hypothesized to influence organization members’
motivation, performance, satisfaction and stress levels. (Pettigrew, 1979). Pareek (2002)
defines culture as the cumulative preference of some states of life over others (values),
attitudes, rituals and norms.

Organizational culture plays a crucial role in shaping the behavior, attitudes, and performance
of individuals within an organization. It influences how employees interact with each other,
how decisions are made, and how work is approached.

A strong and positive organizational culture can drive employee engagement, enhance
teamwork, and contribute to the overall success of the organization. However, a toxic or
negative organizational culture can lead to low morale, high turnover rates, and hinder
organizational growth. Therefore, understanding and managing organizational culture is vital
for leaders and managers who seek to create a thriving and sustainable work environment.

Edgar Schein, who is probably most closely associated with the study of organizational culture,
defines it as a pattern of basic assumptions—invented, discovered, or developed by a given
group as it learns to cope with its problems of external adaptation and internal
integration—that has worked well enough to be considered valuable and, therefore, to be
taught to new members as the correct way to perceive, think, and feel in relation to those
problems. (Schein, 1985).

Martin (1992) emphasizes the differing perspectives of cultures in organizations. She notes: As
individuals come into contact with organizations, they come into contact with dress norms,
stories people tell about what goes on, the organization’s formal rules and procedures, its
formal codes of behavior, rituals, tasks, pay systems, jargon, and jokes only understood by
insiders, and so on. These elements are some of the manifestations of organizational culture.
However, she adds that there is another perspective of culture as well: When cultural members
interpret the meanings of these manifestations, their perceptions, memories, beliefs,
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experiences, and values will vary, so interpretations will differ—even of the same phenomenon.
The patterns or configurations of these interpretations, and the ways they are enacted,
constitute culture.

Organizational culture has a number of important characteristics. Some of the most readily
agreed upon are the following:

1. Observed behavioral regularities. When organizational participants interact with one

another, they use common language, terminology, and rituals related to deference and
demeanor.

2. Norms. Standards of behavior exist, including guidelines on how much work to do, which in
many organizations come down to “Do not do too much; do not do too little.”

3. Dominant values. There are major values that the organization advocates and expects the
participants to share. Typical examples are high product quality, low absenteeism, and high
efficiency.

4. Philosophy. There are policies that set forth the organization’s beliefs about how employees
and/or customers are to be treated.

5. Rules. There are strict guidelines related to getting along in the organization. Newcomers
must learn those “ropes” in order to be accepted as full-fledged members of the group.

6. Organizational climate. This is an overall “feeling” that is conveyed by the physical layout, the
way participants interact, and the way members of the organization conduct themselves with
customers or other outsiders.

Role of Culture in Organizations:

- CULTURE PROVIDES A SENSE OF IDENTITY. The more clearly an organization’s shared
perceptions and values are defined, the more strongly people can associate with its
mission and feel a vital part of it.
- CULTURE GENERATES COMMITMENT TO AN ORGANIZATION’S MISSION. Sometimes it’s
difficult for people to go beyond thinking of their own interests (i.e., how will this affect
me?). When there is a strong, overarching culture, however, people feel that they are
part of that larger, well defined whole and involved in the entire organization’s work.
Bigger than any one individual’s interests, culture reminds people of what their
organization is all about.
- CULTURE CLARIFIES AND REINFORCES STANDARDS OF BEHAVIOR. Culture guides
employees’ words and deeds, making it clear what they should do or say in a given
situation, which is especially useful to newcomers. In this sense, culture provides
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stability to behavior, both with respect to what an individual might do at different times,
but also with what various employees may do at the same time.
By serving these three important roles, it is clear that culture is an important force
influencing behavior in organizations.

Benefits of Understanding and Managing Organizational Culture:

1. Increased Employee Engagement: A positive and strong organizational culture can

foster employee engagement by creating a sense of purpose, belonging, and shared
values. Engaged employees are more likely to be motivated, committed, and productive.
2. Enhanced Teamwork and Collaboration: A cohesive and positive organizational culture
promotes teamwork and collaboration. When employees share common values and
beliefs, they are more likely to work together effectively, share knowledge, and support
each other.
3. Improved Performance and Productivity: A well-aligned organizational culture can drive
performance and productivity by providing clarity, direction, and a supportive work
environment. When employees understand and embrace the organization’s values and
goals, they are more likely to contribute their best efforts.
4. Enhanced Innovation and Creativity: Organizational culture plays a vital role in fostering
innovation and creativity. A culture that encourages experimentation, risk-taking, and
learning from failures can spur innovation and drive competitive advantage.
5. Attracting and Retaining Top Talent: A strong and positive organizational culture can
attract and retain top talent. When organizations have a reputation for a positive work
environment and a values-driven culture, they become desirable places to work,
attracting high-performing individuals.

Schein’s Model of Organizational Culture provides a comprehensive framework for

understanding the different levels of culture within an organization. The model consists of
three interconnected layers:

1. artifacts and behaviors,

2. espoused values, and
3. underlying assumptions.

Level 1: Artifacts and Behaviors

Artifacts and behaviors are the visible aspects of organizational culture that can be easily
observed and measured. They include the physical environment, dress code, symbols, rituals,
and communication styles. These elements often reflect the organization’s values, beliefs, and
norms.

For example, a company that values innovation and creativity may have an open office layout,
flexible dress code, and regular brainstorming sessions. On the other hand, a traditional and
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hierarchical organization may have a formal dress code, closed office spaces, and a top-down
communication approach.

Level 2: Espoused Values

Espoused values are the stated beliefs, philosophies, and goals of an organization. They
represent the aspirations and ideals that organizations strive to uphold. These values are often
communicated through mission statements, vision statements, and corporate policies.

However, it is important to note that espoused values may not always align with the actual
behaviors and practices within an organization. In some cases, there may be a discrepancy
between what is stated and what is actually done.

Level 3: Basic Underlying Assumptions

Basic underlying assumptions are the deep-rooted beliefs, attitudes, and unconscious thoughts
that shape an organization’s culture. They are often taken for granted and rarely questioned.
These assumptions are formed over time through shared experiences and interactions within
the organization.

Unlike artifacts and espoused values, underlying assumptions are not easily observable or
measurable. They are deeply ingrained in the organization’s culture and influence how
individuals perceive and interpret their work environment.

Applying Schein’s Model in Organizations

Applying Schein’s Model of Organizational Culture involves a systematic approach to assess,
analyze, and shape the culture within an organization. Here are some practical steps to
successfully apply Schein’s Model:

1. Assessment: Begin by conducting a thorough assessment of your organization’s current

culture. This can be done through surveys, interviews, and observations. Identify the
visible artifacts and behaviors, as well as the stated espoused values and underlying
assumptions.
2. Analysis: Analyze the findings from the assessment to identify cultural strengths and
weaknesses. Look for areas where the organization’s culture aligns with its vision and
goals, as well as areas where there may be discrepancies or conflicts.
3. Alignment: Align the organization’s culture with its vision, values, and goals. This may
involve making changes to artifacts and behaviors, revisiting espoused values, and
challenging underlying assumptions. Ensure that the organization’s culture supports and
reinforces the desired behaviors and outcomes.
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4. Communication and Reinforcement: Communicate the desired culture to all levels of

the organization. This involves clearly articulating the organization’s vision, values, and
goals, and ensuring that they are consistently reinforced through communication
channels, policies, and practices.
5. Continuous Monitoring and Improvement: Organizational culture is not static and will
evolve over time. It is important to continuously monitor and assess the culture to
ensure that it remains aligned with the organization’s vision and goals. Regular
feedback, surveys, and performance evaluations can help identify areas for
improvement and facilitate ongoing cultural development.

Criticisms and Limitations of Schein’s Model

While Schein’s Model of Organizational Culture has been widely recognized and influential, it is
not without its criticisms and limitations. Some of the common criticisms include:

1. Simplistic View: Critics argue that Schein’s Model oversimplifies the complexity of
organizational culture by reducing it to three levels. They argue that culture is a
multifaceted and dynamic phenomenon that cannot be fully captured by a linear model.
2. Lack of Practical Guidance: Some critics argue that Schein’s Model lacks practical
guidance on how to effectively change or shape organizational culture. They argue that
the model is more descriptive than prescriptive, making it challenging for organizations
to apply in practice.
3. Influence of External Factors: Critics argue that Schein’s Model does not adequately
account for the influence of external factors on organizational culture. They argue that
factors such as industry dynamics, market conditions, and regulatory environments can
significantly impact an organization’s culture.
4. Limited Focus on Power Dynamics: Some critics argue that Schein’s Model does not
sufficiently address power dynamics within organizations. They argue that power
structures and hierarchies play a significant role in shaping organizational culture, and
these aspects are not adequately captured in the model.

Despite these criticisms, Schein’s Model of Organizational Culture continues to be

widely used and valued by practitioners and researchers alike. Its emphasis on the
interconnectedness of artifacts, espoused values, and underlying assumptions provides
a valuable framework for understanding and managing organizational culture.

Video = Mike Clayton- Scein’s culture Edgar Schein's 3 Levels of Organizational Culture (youtube.com)

‍
Pareek’s OCTAPACE Model of Culture
Management is concerned with achievement of results in an organization. The dilemma
before management is whether to design and develop an organization according to the
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larger societal structure or to develop a distinct organizational culture that will enable
achievement of results. Effective organizations use the main cultural features of the
society to design their systems and practices and they need to be proactive to influence
the larger societal culture in ways needed for the society to progress.
Also, the question before developing societies is whether their characteristics are
dysfunctional for moving towards modernity. Experience in managing development has
shown that developing countries need not adopt/copy the culture of the developed
world. Developing countries can contribute significantly to evolving future societies
capable of meeting new challenges.
According to Pareek (1985), there are various terms used in the context of
organizational culture – values, ethics, beliefs, ethos, climate and culture. Ethics refer to
the normative, what is socially desirable. Values, beliefs, attitudes and norms are
interrelated. Interaction between beliefs and values results in attitude formation, which
then produces norms. When all of the above accumulate and integrate or get
institutionalized, social phenomena are formed.
The culture-related concepts can be seen as multi-level concepts. At the core or first
level are the values that give a distinct identity to a group. Second level is climate which
can be defined as the perceived attributes of an organization and its subsystems as
reflected in the way it deals with its members/groups/issues. The third concept is
culture – the cumulative beliefs, values and assumptions underlying transactions with
nature and important phenomena, reflected in artifacts, rituals etc. Culture is reflected
in ways adopted to deal with basic phenomena.

Organizational Ethos: Ethos can be defined as the underlying spirit or character of an

entity and is made up of its beliefs, customs and practices. At the base of ethos are core
values. Pareek (2002) proposes 8 important values OCTAPACE, a term indicating the
eight (octa) steps (pace) needed to create a functional ethos. These are briefly discussed
below.

1. Openness- can be defined as a spontaneous expression of feelings, thoughts and

ideas and sharing of these without defensiveness. Openness is in both directions,
receiving and giving. Both these may relate to ideas (including suggestions),
feedback (including criticism), and feelings. Openness may also mean spatial
openness (in terms of accessibility). E.g. installing intranet, office without walls.
Outcome could be in terms of productive meetings and improved
implementation of systems and innovations.
2. Confrontation- It is bringing out problems and issues in to the open with a view
to solving them rather than hiding them for fear of hurting or getting hurt. The
outcome will be better role clarity, improved problem solving, and willingness to
deal with problems, willingness of teams to discuss and resolve sensitive issues.
3. Trust- is taking people at their face value and believing what they say. It is
reflected in maintaining the confidentiality of information shared by others, and
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in not misusing it. The outcome of trust includes higher empathy, timely support,
reduced stress, and reduction and simplification of forms and procedures.
4. Authenticity-It is congruence between what one says and does. It depicts the
genuineness and truthfulness of the employees. The outcome is faith amongst
each other and reduced distortion in communication between the members of
the organization.
5. Proactivity - means taking initiative, proper planning and thinking of alternative
options and preventive measures before taking action. A person showing
proactivity functions at all 3 levels of feeling viz feeling, thinking and action.
Proactivity is indicative of high levels of maturity. The outcome of proactivity is
that it gives initiative to a person to start a new process, develop strategies,
process information at multiple levels or set a new pattern of behavior.
6. Autonomy- is using and giving freedom to plan and act in one’s own sphere. The
outcome is the mutual respect, individual initiative, willingness to take
responsibility and better succession planning. It leads to effective delegation in
the organization and reduction of references to seniors for approval of planned
action.
7. Collaboration- is to seek help and also giving help to others and working
together to solve problems. The outcome is improved communication and
resource sharing, productive meetings, joint decisions, more involvement of
employees, and team spirit in the organization.
8. Experimentation- means using and encouraging use of innovative approaches to
solve problems, using feedback for improvement and encouraging creativity.
Organizational learning implies applying past experiences to current problems to
reach beyond the usual solutions i.e. being innovative and creative. Lateral
thinking is about generating alternatives. Such thinking contributes to the
development of new products, new methods and new processes.

Organizational culture is the values, traditions and beliefs of the organization, which bestows
the uniqueness to the organization. Organizations are widely recognized in the public by the
culture it has propagated. Every organization is unique and therefore it has its own culture
imbedded at the core of the organization. It helps as a guide for the existing and newly joined
employees to understand the way and style of the working in the organization.

Organizational culture thus consists of the totality of an organization around one or more focal
concerns regarding work and relationships at work. Its structure is prototypical of a societal
culture. At the core are the assumptions, beliefs, and values regarding work or non-work
interests that manifest in individuals’ and groups’ behavior that in turn affect or are affected by
organizational systems, procedures and norms, and the underlying philosophy, strategy, and so
on.
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