Edgar Schein's Organizational Culture Model

Overview of Edgar Schein’s Organizational Culture Model

  • Edgar Schein of the Sloan School of Management developed a notable model of organizational culture.

  • The model divides organizational culture into three distinct but interrelated levels: Artifacts, Values, and Assumptions.

  • Schein's model can be likened to an iceberg; the most critical aspects lie beneath the surface.

Three Levels of Organizational Culture

Artifacts

  • Artifacts represent the visible surface elements of an organizational culture.

  • These are readily observable by external observers, akin to the symbols outlined in the Johnson and Shoals model.

  • Examples of artifacts include:
      - Branding
      - Office furniture
      - Color schemes
      - Dress codes
      - Day-to-day rituals
      - Job titles
      - Distinctive stories told about the organization

  • Importance of stories as artifacts:
      - While some stories are shared externally, others remain internal, influencing deeper cultural aspects.
      - Understanding artifacts necessitates delving into the underlying meanings of these stories.

Espoused Values

  • The second level encompasses the espoused values of the organization, which are:
      - Officially declared values and norms that guide member behavior.
      - These values prescribe expected actions, methods, and decision-making processes.

  • Espoused values dictate interactions among members and their representations of the organization externally.

  • Organizations may emphasize espoused values through public statements and visible symbols such as:
      - Value statements
      - Organizational straplines accompanying branding

Assumptions

  • The core of the model consists of shared basic assumptions that reflect deep, often unquestioned beliefs within the organization.

  • These assumptions govern the interpretation of stories and ultimately shape both artifacts and values.

Types of Assumptions (Edelstein, 1985)

  1. Truth: Assumptions regarding how truth is determined within the organization.

  2. Time: How time is perceived and respected, impacting organizational behavior and decision-making.

  3. Space: Beliefs about ownership and allocation of space within the organization.

  4. Human Nature: Views on whether humans are inherently good or bad, changeable or fixed in behavior.

  5. Environment Relationship: How the organization engages with its environment, influencing public perception and strategic decisions.

  6. Social Power: Assumptions surrounding social power and interpersonal relationships, including:
       - Allocation and respect for power and responsibilities.
       - Balance between competition and cooperation among members.
       - Leadership styles and conflict resolution methods.
       

Implications

  • Schein's model provides a simplified framework for understanding organizational culture, especially in comparison to the more complex Johnson and Joel's seven components.

  • Recognizing culture requires acknowledging that beneath the visible artifacts are deeper shared values and profound assumptions.

  • To effect cultural change within an organization, shifting the foundational assumptions is crucial.

  • Changes to artifacts can be a starting point, but without altering underlying assumptions, true cultural transformation remains unattainable.

Conclusion

  • Understanding Edgar Schein's three levels of organizational culture aids in comprehending how organizations function.

  • The model illustrates the importance of looking beyond visible aspects to understand the deeper cultural dynamics that drive behavior and decision-making.