Section One: Theories on Organisational Culture

In the words of Geert Hofstede, culture is, “the programming of the human mind by which one group of people distinguishes itself from another group. Culture is learned, not innate. It derives from one’s social environment rather than from one’s genes.” (Hofstede, Hofstede, and Minkov, 2010, p. 6) When placed within the context of an organisation, culture is the result of an organisation’s values and practices. According to the Chartered Management Institute, “Organisational culture is the way that things are done in an organisation, the unwritten rules that influence individual and group behaviour and attitudes.” (CMI, 2015) Organisational culture is crucial to any company’s success as it influences its operation at every level. A positive culture can breed success and employee satisfaction, but one which leaves employees unhappy can harm an organisation’s success.

One of the most prominent theories on Organisation Culture is Schein’s Culture Model (Schein, 1980).

Level 1: Artefacts

Schein defines artefacts as “the constructed environment of the organization, its architecture, technology, office layout, manner of dress, visible or audible behavior patterns, public documents such as charters, employee orientation materials, etc., etc.” (Schein, 1983, p. 2)

Level 2: Values

Described by Schein as “what people say is the reason for their behavior, what they ideally would like those reasons to be, and what are often their rationalizations for what they have done.” (Schein, 1983, p. 2)

Level 3: Basic Assumptions

Schein explains that an organisation’s basic assumptions “will ultimately derive from two sources: 1) the prior assumptions of organization founders, leaders, and members based on their own experience in the parent or host culture, and 2) the actual experiences which that organization has as it copes with its external and internal problems.” (Schein, 1983, p. 4) organisations are viewed as effective if they maintain harmonious internal relationships, while others are viewed as effective if they succeed against competitors (Cameron, 2009, p. 2). When combined, the dimensions form four quadrants, each one encompassing a different set of organisational values. These four values are thought of as the most common organisational values of any company and are constantly competing with each other for resources.

With this model, Schein describes organisational culture and its impact on an organisation with regard to learning and group dynamics (Schein, 1983, p. 1). Schein’s model breaks down organisational culture into three levels: artefacts, values, and basic assumptions.

Put simply, artefacts are the characteristics of an organisation easily observable by somebody inside or outside of the organisation. These can include office décor, dress code, company reports, employee’s behavioural patterns, and more. According to Schein, although artefacts are observed with relative ease, there is very little to interpret or analyse about them, and they offer very little insight into an organisation’s culture (Schein, 1983).

Values are explained as an organisation’s proposed motivations for their practices. When applied to an organisation as a whole, values might be found in a mission statement or corporate charter. They are often presented in writing and come in the form of rather vague statements. Values are more indicative of an organisation’s culture as they provide insight into how it wishes to be viewed by outsiders as a result of what it believes outsiders value.

Assumptions are unconscious and unspoken beliefs which dictate values and behaviours within an organisation. The assumptions of an organisation are the foundation of its culture, and they dictate all activity within an organisation. The key distinction between values and assumptions, according to Schein, is that values are what one says, and assumptions are what one believes; as a value transforms into an assumption, it is no longer seen as “debatable and confrontable” (Schein, 1983, p. 3). Schein states that “as a value leads to behavior, and as that behavior solves the problem which motivated it in the first place, the value gradually becomes transformed into an assumption about how things really are and, as it is increasingly taken for granted, drops out of awareness.” (Schein, 1983, p. 3) Assumptions, as Schein says, are “the essence of the culture” (Schein, 1983, p. 19), and offer unparalleled insight into the culture of an organisation.

According to Schein, the way to ascertain the true culture of an organisation is through complex observation, interview, and inquiry between selected members of the group and outsiders to reveal the underlying basic assumptions of the organisation (Schein, 1983).

This model can be utilised to develop new strategies or styles of management and organisational development. Using the framework, leaders and managers can be trained within the context of an organisation’s culture and the ambitions of the organisation, acknowledging its current problems. This allows companies to ensure that the necessary time and resources can be dedicated to all four organisational values, so that they are no longer competing with one another. The CVF can also be used as a tool to measure the importance of each value to an organisation, allowing organisations to use a consistent strategy for individual organisational development and improvement (Cameron, 2009, p. 2).