What is organizational culture: the theory and practicalities of developing a great one

Culture Is The Lifeblood Of Your Organization

A crucial aspect of an organization’s performance, one that often goes unspoken, yet influences every aspect of your work is: Culture.

Why should you make a concerted effort to cultivate your organizational culture? 

When it comes to culture, your ‘why’ is the recognition that culture is the lifeblood of your organization. It’s the collective mindset and attitudes that dictate how you operate, how you treat each other, and how you approach your work. It’s the invisible force that can either drive you towards your vision or pull you away from it.

Edgar Schein, a leading authority on organizational culture, tells us that culture is not something we have; it is something we are. It’s not an external entity that we can manipulate at will; it’s the shared experiences and values that bind us together. So, when we invest in culture, we invest in our people and our future.

How do you create this culture?

Firstly, you need to acknowledge and understand the existing culture. This involves looking at your shared assumptions, beliefs, and values – your ‘way of doing things.’

Next, you need to clarify your vision and values – your ‘why’ and ‘how.’ These form the bedrock of your desired culture. They provide the direction and the guidelines for behavior.

Then, we need to align your behaviors and practices with your vision and values. This is where leadership plays a vital role. Leaders need to ‘walk the talk,’ demonstrating the behaviors that reflect your values and drive you towards your vision.

Lastly, you need to reinforce the desired culture through consistent messaging, education, rewards, and recognition. This helps to embed the desired behaviors and attitudes in your daily routines.

What happens when we invest in creating a culture?

You build an organization that is more than just a workplace. You create communities that are driven by a shared purpose and values. You foster an environment where people feel valued, motivated, and aligned with your organization’s vision. This not only improves performance and productivity, it also enhances employee satisfaction and retention.

Investing in culture is not a luxury; it’s a necessity. It’s the foundation that determines whether you merely survive or truly thrive. So let’s heed Edgar Schein’s wisdom and invest in creating a culture that drives us towards a ‘why.’
 

• Shared Values: Company culture is the set of shared values and beliefs that guide employees in their decision-making and behavior. These values may be formalized in a mission statement or simply understood by employees through their interactions and experiences within the organization.
• Organizational Identity: Company culture is the unique identity of an organization that differentiates it from others. It is shaped by the company’s history, leadership, goals, and practices, and it helps to create a sense of belonging and pride among employees.
• Social Environment: Company culture is the social environment within an organization, characterized by the interactions, relationships, and communication among employees. This environment influences how employees work together, solve problems, and ultimately contribute to the company’s success.
• Workplace Practices: Company culture encompasses the formal and informal workplace practices that guide employees’ actions and behaviors. These practices may include policies, procedures, performance management, and employee development programs, as well as unwritten norms and expectations.
• Employee Engagement: Company culture is the collective emotional commitment of employees to the organization and its goals. A strong company culture fosters a sense of ownership, motivation, and loyalty among employees, leading to higher levels of productivity, collaboration, and retention.

The Edgar Schein definition of Culture

Edgar Schein, an American organizational psychologist and former professor at the MIT Sloan School of Management, is known for his work on organizational culture. Schein defines organizational culture as:

“A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.”

In simpler terms, Schein’s definition suggests that organizational culture is the collective understanding and learned behaviors that a group develops while addressing challenges and adapting to its environment. This shared set of assumptions is considered effective and is passed on to new members, shaping how they perceive, think, and feel within the organization.

Edgar Schein offers some great advice on how to create and manage organizational culture. He emphasizes the importance of understanding the underlying assumptions and values that form the foundation of an organization’s culture. Schein proposes a three-level model to better comprehend and shape culture:

• Artifacts: These are the visible and tangible aspects of an organization’s culture, such as the physical environment, dress code, and communication patterns. Leaders should be aware that artifacts can have an impact on employees’ perceptions and behaviors but can be difficult to interpret without understanding the underlying values and assumptions.
• Espoused Values: These are the stated beliefs, values, and norms that guide decision-making and behavior within an organization. Leaders should ensure that espoused values are clearly communicated and consistent with the organization’s practices, as discrepancies between stated values and actual behavior can create confusion and mistrust among employees.
• Basic Underlying Assumptions: These are the deeply ingrained and often unconscious beliefs that form the core of an organization’s culture. They influence how employees perceive, think, and feel about their work environment. Leaders should recognize and address these assumptions to shape the culture effectively.

To create collective understanding and learned behaviors, Schein suggests that leaders:

• Communicate: Engage in open and honest communication, encouraging dialogue to develop a shared understanding of the organization’s values and goals.
• Walk The Talk: Model desired behaviors and values, as employees often look to leaders for guidance and cues on how to act within the organization.
• Systems & Process: Align organizational systems and practices with espoused values, ensuring consistency between what is stated and what is practiced.
• Learning & Development: Encourage learning and development, fostering an environment where employees can grow, adapt, and contribute to the organization’s success.
• Call It Out: Acknowledge and address cultural issues, being proactive in identifying and resolving discrepancies or conflicts within the organization’s culture.

By understanding and applying these principles, leaders can effectively shape the collective understanding and learned behaviors that form the foundation of their organization’s culture.