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H ^is
ALFRED
P.
WORKING PAPER
SLOAN SCHOOL OF MANAGEMENT
Corporate Culture;
What It Is And How To Change It
Edgar H. Schein
Sloan Fellows Professor of Management
Sloan School of Management
Massachusetts Institute of technology
ONR TR-26
November, 1983
MASSACHUSETTS
INSTITUTE OF TECHNOLOGY
50 MEMORIAL DRIVE
CAMBRIDGE, MASSACHUSETTS 02139
Corporate Culture:
What It Is And How To Change It
Edgar H. Scheln
Sloan Fellows Professor of Management
Sloan School of Management
Massachusetts Institute of technology
ONR TR-26
November, 1983
/6aX-^3
Invited address delivered to the 1983 Convocation of the Society of Sloan
Fellows, MIT, October 14, 1983.
•
Approved for public release: distribution unlimited.
Reproduction in whole or in part is permitted for any purpose of the United
States Government,
This research is sponsored by:
Chief of Naval Research,
Psychological Sciences Division,
Organizational Effectiveness Research,
Office of Naval Research (Code 452),
Arlington, VA 22217
under Contract Number N00014-80-C-0905; NR 170-911,
M.
M.I.T.
M
IJdRARIES
7 2000
J
g
-
-
1
CORPORATE culture: UHAT IT IS AND HDU TD CHANGE IT
EDGAR
SCHEIN
H.
SLOAN FELLOWS PROFESSOR OF MANAGEMENT
SLOAN SCHOOL OF MANAGEMENT
Sloan Fellows* MITt Oct.
solve
culture will
t
to
].
f
study of
nsey
i.i
res*
i ri
d
of our productivity
are
a
s t r o ri g
e
; ;
ce
1 1
e
ri
Ame r
t
i
c a ri
c o ni p a ri
necessary ingredierit of
c ij
1
1u res
?
a
ri
d
thereby?
»
The dilemma is that we dont
f
we found
be found?
it.
a ri
es
(1982)
?
;<
better
a
strong
Several recent
the
report on
emphasize that
'
So the hunt
st ro
is
r-i
ori
our problems.
know exactly what we are hunting for.
t'.now
what to do with the catch
and all kinds of models are advocated for creating?
managing*
culture? Just in case culture turns out
unfriendly animal.
Even if we learn how to decipher organizational culture?
at
a
All kinds of definitions of organizational culture can
changing or even circumventing
to be
i
alleged?
of culture or
e;'>cellence.
And it is not at all clear that we would
if
is
probleii'S.
i
Today it
scieritists.
it
and Waterman
Peters
notably the
most
books?
soirre
few social
the right kind
how to build
understanding of
a
arourid because?
of the hottest topics
is oriG
cu
1983.
14»
by anyorie but
was hardly irientioned
1
Society of
few years ado the coricept of corporate or orsianizational culture
A
McK
Convocation of the
the 19S3
delivered to
Invited address
MIT
»
all clear
whether full
knowledge of one's
own culture
not
it
is
is
always
.
_
o
self -insiaht
Sometimes
helpful.
discouragement*
and sometimes
what
we have.
On
culture leaves
orie
is
evolution
arid
and
mystiaue of
the
insight into
lack of
vulnerable to forces of
anxiety
of
self-insiaht destroys
other hand*
the
source
a
own
orie's
change which
does not uriderstand and may have difficulty controlling.
orie
see this clearly in the
One can
information
and processes
such as the
systems which
the computer has
forcirid managers
effect of
»
coritrol»
made possible.
arid
decisiori support
Such
systems have the
confront aspects of their
employees to
arid
thought about before.
they had never
culture which
introduction of new technologies
For
e;<
ample? the
introduction of electronic mail makes managers confront the Question of
each other
how they prefer to relate to
about decision
meetinsSs.
'i
I
way
t^lis
they
that
Idealize
ri
stead
deperided
arid?
iri2
know of? nianaders came to
face-to-face
on
iri
freauerit
chose to hold
subverted
stead?
and
coritact
their style? they
of chari^in^
of work.
I
ori
the electro riic
to
niBil
H s t e ni
T.
n
another
II
foiMiied
ijsed
o r ^ a ri
i
z at
i
o ri
the
?
desks made it
all 9;'.ecutive
i
one or^anizatiori
In
niaV'irisi,
what assumptioris they hold
arid
about
to Question
all
ri
t roduc t
infoi-mation?
delays into
Isster
the
than lower
that
about
i
nfor
system
t'ne
iti
at
i
o
ri
of
o ri
pe rso
their or^ariizatiori?
ariy
produced so much resentmerit? hidiriS of
f
i
ri
a 1
possible for seriior maria^ers
aspects of
lower levels
i
flow.
a
inforrriatiori?
i
to
i
j
t e rs
power which
or
m a ri a 3 e m e ri t
levels to allow them to irivesti^ate
ri
the'j
This
and even falsify
to
o
be full'^
deviations they noticed.
had to be modified
S e ri
cqmp
irid
introduce time
saw data
arid
firid
o
ri
e
d 3y
out why
t^1inds were off.
The whole
system of trust? deleSatiori?
tri
an axemen t by objectives?
e
-
-
3
development of
point
subordinates
3ction» can
of
introduce
he
»
and Setting
unwittingly undermined
technologies and
some new
decisions made close
insiaht into such conseauences
practices.
to the
hy
the attenipt
If
we do
to
not have
we may change our orSanizat ions in ways
»
that are neither desirable nor effective in the lond run.
cultural matters
Insight into
implementation
and
strategic
optioris.
of strategy.
Not only
assumptions.
sees this
One
engineering based
to a marketing
marketer
professiorial
ruri
culture limit
the
against powerful cultural
most clearly in
from 3n
the trarisitiori
based organization.
difficult for the e;;-9rigineer to
only is it
Not
coriceive of mark etirig in the way that
perceives
implementation of
a
people who are
the sales force?
iri
does
the creation
which are coriceivable to an organization* but clearly
implement strategies if they
one cannot
the
also clearly affects
this
function?
the
but
marketing strategy may be undermined by the kind of
the iriceritive systems operating?
the
issues that e;;ecutives pay attention to? and so on.
Yet
the
strategy which
how to
as
a
of
a
m a ri a g e
economic
situation of
ari
reauires some culture
and change culture.
change? so we
But we
may dictate
orgariization
iti
ust
need
iri
sight
not forget that
cu
a
irito
1
1
ij
r
concept was invented by anthropologists to describe those elements
social system
which were?
in
many senses?
the
LEAST changeable
aspects of that system.
How
develop
would
thien
shall
some useful
like to
to
insights for the
approach these
corporate culture
to
we proceed
issues
make serise
mariagenierit
today by
of this
of
area
to
arid
organizatioris'?
reviewing
which emphasizes how culture is learried.
I
model of
a
If we
influence the dynamics of culture change? we must first have
a
ar^
clea^-
»
-
4
-
model of culture origins*
DYNAMIC MODEL OF ORGANIZATIONAL CULTURE
A
The simplest way to think, about the culture of any Sroup or social
unit is
to think of
learning of
solution to
is the
develops its capacity to
that unit» as it
external environment
consistently for
a
and to manage its own
arid
to perceive?
correct way
survive in its
internal affairs.
internal problems which
external and
^roup
collective or shared
sum total of the
the
it as
Culture
have worked
are therefore tauSht to new menibers as the
about*
think,
feel
and
to those
relation
in
problems
The
k.
inds of problems which any
Think of
a
company
based
a
merger.
s
I..I
ori
rvive in its
primary
2)
'3
re
exterrial
I
envirorinieritt
3)
or
1)
sonie
a
riew
a
develop^
social unit must
riew
some reason for e-iistiri^.
task.*
some concrete Soals?
which
Just beeri formed
that has
This
^roup faces are shown
serise of
iri
Chart
1.
or^ariization
if
it
is
to
its own missiori or
From this is typically evolved
means for accomplishing those goals? by
mean the orgariiiiational structures and decisiori processes which
developed?
and control
4)
some
itiearis
of moriitoring progress?
systems that are rjtilized?
arid
some
5)
the information
niearis
repairing
of
stnjctures and processes if they are not acconiplishing the goals.
In
order
to function at
common language and conceptual
boundaries
the
arid
criteria
of the
power? status?
organization?
property?
however? the
arid
group must have
1)
a
categories? 2) some way of defining its
for membership?
recruitment? selectiori?
systems
all?
which is typically
socializatiori?
3
>
some
trairiirig?
way
other resources?
some
bodied
iri
and develop nierit
of allocating
4)
efi
authority?
norms of how to
d
-
-
5
handle interpersonal relationships and intimacy* what is often embodied
the terms
in
or climate
st>:fle
dispensing of
of the organization
rewards and punishments*
unmanageable* unpredictable*
usually dealt with
criteria for the
5)
>
some
way of coping with
and stressful events.
This last area is
arid
6)
by developing ideologies*
religions* superstitions*
magical thinking and the like.
organizational culture
Note that
problems.
range of
bodies the
must never make
Ue
when we have described
eni
aspect
orie
of
solutiori to
the mistake of
wide
a
assuming that
given organ izatiori that is very
a
salient* such as how people are managed* for example* that we have then
described the whole culture.
each of the e;;tern3l
iriternal
arid
have also observed
I
Sijch
iri
total description should deal with
a
issues which have been identified.
those orgariizations that
I
k.riow
that
well*
they are to some degree iritegrated by even more basic assumptioris which
with broad
deal
parsimoriy
arid
humari
e
1
.3
1
i
ons
*
fu
the nature of
relationships*
arid*
ri
It
which
consistericy
concepts* dealing with
r
issues.
damen ta
h u ni a ri
ri
is
probaly
drives
1
iti
atu re
most im porta rit*
*
of o r g a n i
the nature of
the
zat
need
humari
higher
to these
us
a11e rs
the
i
o n / e ri v
h u m a ri
for
ordeT^
i r
o ri ai e ri
activity
nature of reality
3
t
ri
and truth*
embodying very fundamerital coriceptual categories about time* space*
arid
the nature of things.
I
be
out
call
of
these ASSUMPTIONS rather than VALUES
because they tend to
aware ess* taken
basically viewed
ri
for
and
grarited*
automatically
true
discussible*
basic
assuniptioris are
riot.
when our
observations or
(Questions
assumptiori
crazy*
or too
arid
absurd
rion-negotiable.
to be
dealt
with*
Values are
Ue are
as
debatable
up agairist
are treated
when someone
as
arid
a
basic
as
duirib*
Questions
-
6
-
whether the world
why
round? whether it is necessary
is
more than
not schedule
one should
to mske
one person at
3
profit?
3
time
for sn
a
set of basic
appointment? and so on*
Once
^roup has had enough of
a
assumptions about
have
has an
offices and ardue
ri
swe rs
level has
why they
do what
doors are
operi
of underlying
to decipher.
If
people wander into
that
does that mean?
I
see that
each others'
The artif3ctu3l visible
rarely does it provide
provide clues but
believes that
he
valued?
arid
When
I
in
will elicit
ask people Questions
values
of the behavior.
may learn that
I
of the company ordered them to be
be accessible.
I
iiisy
3
lot bees use
actiria.
I
to
becorrie
more
supposed to
one is
that middle
may also learn
is
mak. irid
Set
ta^.
in3 too
disciplined?
efficient snd
the enviroriment which they c3nnot identify resists.
hsve
a
siood
de3l of information of this sort
suSSest themselves
the way it does?
at
this
level.
arid
I
often
But
really con fro ted the esserice of the culture at all.
ri
be3in to
arid
with each other because communicatiori is highly
see why the or^snisatiori work.s
immediately
I
frustrated because decision
they try
if
'something*
I
If
everyorie should always
decisions before
are ouite
but
they do?
they srsue
that
agreement of
managers
credibility.
rriore
because the President
learn that people chat
lond?
but hsrd
reasons behirid some
understarid the
operi?
cari
manifestations
level we
.
The ne;;t
about
door?
what
lot?
environment
and bearable
3
a
operi
as existing at
most superficial
At the
2.
are easy to see?
They
every office
Chart
visible behavioral
artifacts? the
concepts.
iri
history to develop
think of the culture
itself? we can
as shown
three levels?
3
I
can beSiri to
i
m prove merits
have
The values
not yet
I
have
-
7
-
nisnif eststions of
encountered 3re themselves
the culture? hut not what
we could think of 3S the driving force or essence of the culture.
believe that what really
I
responses
organization
learned underlying
the
is
and*
some cognitive map*
seen as correct
to be
assumption? and?
if
it
valid.
arid
coritiriues
it
It
As
always
some hypotheses
in solviriS those problems?
it has success
if
assumptions.
collective problems
solves its
world view»
some
drives or creates the values and overt
3roup
operates with
about reality?
a
hypothesis to an
Gradually drops
it
or
that world view comes
charides from
to work?
a
out of
awareness altogether.
Because of
the
assumptions Gradually
that the ^ro'jp
what
I
has
rieed
hiumari
a
consistency and order?
come to be coordinated
lori3
erioudh
really mean by culture?
which are implicit?
for
tal<.eri
is
into
a
the basic
pattern? assuming
this process to happen.
life for
So
the PATTERN of underlying ASSUMPTIONS
for granted?
arid
uri
conscious? unless they are
'ieliberately surfaced by some process of iriQuiry.
For
e;;
am pie?
discover that
and
dooi-5
orily
riot
the deep reasori why it has
freauent meetings
about truth ii
ideas but
everi
truth?
no one
is
hence
the boss?
even if that takes
By coritrast?
few meetings?
is
coritinue to probe
I
is
the
in
above company?
the
operi
shared assuniptiori that
considered
to be
a
ori
truth can
each other.
This
combined with the assumption that anyone can
smart enough to
niutijal
tinie
in a ri other
the basic
will
I
office laridscspes? c^en
be determine by some process of testirig ideas
.j'^iuumi^'tion
i>c»ve
if
testirig
assess his or her own ideas?
is
the only
way to determine
and energy.
company that has
many locked offices
paradigm involves the assumptions
manager's personal
turf? not to
that
a
arid
Job
be interfered
-
8
-
with unless there is clear evidence
has
to intrude
risht
a
Whereas
innovative
Set
organization to another.
of
corrective
arid
is
iri
formation
me3sures>
overload
arid
many people can set
second organization there is frustration over the
in the
to
and then only the boss
slow decision making because too
frustration over
inability
sud^estioris
first organization there
in the
into the actr
with
of failure?
information
from
one
part
of
suSSestion that there should be
The
a
the
system
lateral communication simply never Sets off the around because it is
assumed that
threateri and irisult
one will
information when
rione
has beeri
niarl'.et
company really
X
are the
iriost
or Theory Y
paradidm
It
which
is
ones? what is the
the
best form of
managed based
and
on
whether or not individuals or Sroups
the interloci'-. inS
is
furictions in the
organization? and so
of the
offers
successful product?
a
are like? which
be motivated
assumptioris?
ultimate unit
1.
im porta rit
should
how people
shown in Chart
basic
custotiiers
arid
are the
organization?
Theory
place
orie
for.
asl<.ed
about the nature of
Assumptions can drow up
what the
the mariaSer if
deep
arid
on for
each area
of these assijniptioris
most
ini
porta rit
irito
layer
3
of
culture.
orSariizatiorial
HOW IS CULTURE LEARNED?
There are basically two learning mechanisnis which interact!
and pain reductiorit
1)
Ari;<iety
2)
F'ositive reward
Picture?
Sroup will
eri
arid
if you will?
reiri
a
the social trauma model?
force meritt the success
new Sroup created by
counter from the besiririins the
from uncertainty
as to whether
or not the
a
and
rriodel.
founder.
Such
a
basic anxiety which comes
Sroup will survive
and be
-
9
-
and whether
productive?
the tiiembers
members to
perceivin3» thinkinsi» and
seek ways of
which make life more predictable.
can share and
The founder may have
Sroup shares in the solutions and sees that
but only as the
addition
crises
of
perception of
such pain
in
the future.
When
arouse
it will
for dealing with
3ri;<iety
cause
arid
ways of thinkiniSf
the actual pain if it can
feeling*
example?
For
failure?
if
they
that is similar to
the ^roup to do what
avoid as much as
It will
be avoided by ritualistic
and behavina.
youn^
a
it»
the
learn ways of avoidinsi
situation arises
a
Sroup will face
members share
As
before in order to reduce the anxiety.
possible reliving
r-Toduct
and develop ways
the crisis
prior crisis?
it did
history.
early
its
in
1983).
traumas* every new
initial
overcome the immediate pain? and also
learri to
3
to these
survival
leading Sroup
feelina which they
they work can we think of cultural learning (Schein*
In
with each
solving these problems which 3et embedded in
his own preferred ways of
the aroup»
to work
uncertainty is traumatio
Coslnitive and social
other.
will be able
compariy faces
learns that it
e;;ti
notion because
has underenaineered the
of
a
product? and
survives by careful re-desiSn of the product? it may well learn that to
avoid
such trauma
carefully
in
the
in
the future?
first
place?
it
should
engineer products
though that
even
is
more
more
costly.
Whatever work.s in 'saviri^* the organization? becomes learned as the way
to avoid future trauma.
careful eri^ineerin3
new
incomiriS
as
Members
"the way
eridineers
that
of the organization beSin to
here?*
we do think.s arourid
"that
is
the
way
we
thirik.
arid
should
of
teach
desi^ri
products?" based on the now uricoriscious assumption that this is the way
to win
in the marketplace.
10 -
-
learned to
do something to
avoid it»
danger
avoid
thus preventing
still
exists.
ourselves from
company
The
accept
we have
we continue to
testinsi whether or
that
carefully
now
not the
enaineers
or not customers now would or would
engineered and less
less well
a
that once
painful situation*
a
everything cannot find out whether
not
mechanism is
this learning
problem with
The
costly product.
Trauma
based learning is hard to undo» because it prevents us from testing for
changes in our environment.
can
then be
thought
Cultural
of as
DEFENSE
assuitiptioris
learned by this mearis
MECHANISMS which
the 3roup
has
invented to cope with anxiety and potential trauma.
The second major learn irig mechanism is positive reiriforcement.
repeat
what
worl<.s»
3ive
arid
up what
starts with some fourider beliefs that
3ood service?
customer's
I'Bsource?
action
or
based on
^roup learns
to
have the low
that belief
If
price product? or
I
J
1
1 ij r e
itiajor
whatever? and
worked and gradually accepts
a
then the
it
as
3
piece of its
.
But this learning
learning
in
that
it
mechariism is differerit frori trauixiatic avoidance
produces responses
orivironment.
If
then changes
so that previously
the groijp
can also
the
errviroriirient
will find out
i'e-e;;3niiried
is
company
their
market place?
shared view of how the world really is? thereby creatirig
c
youri3
employees as
succeeds in the
repeat whatever
the
the way to succeed is to provide
treat their
or to
to always
doesrit.
We
arid
changed.
is consistent
the
producing success and
rio
longer worl'?
and the resporises
will be
this learning mechanism
the other hand?
produce behavior very resistant to
inconsisterit?
iri
successful responses
about it Quick. ly»
Ori
continually test
which
change if the eriviroriment
producing success at one time
and failure at another
-
-
11
reinf orcemerit leads to
Unpredictable iritermittent
time.
very stable
learning Just as trauma does.
note» by the W3y»
Learning theorists also
is so
stable because
avoid
the
anticipation of pain» is very rewarding.
of
terms of
adaptatiori to
of thinking
assumptions
Thijs
immediate comfort
about the
nature of
of anxiety
may be disf unct ional in
And if those
held» taken-f or-granted
become deeply
the world*
the
some organizational ways
rapidly changing environment.
a
have
anxiety*
the
of
though those ways of thinking
reduction* even
ways
problems produce the
thinking about
ritualized avoidance response
reduction
actual
the
but
pain»
only does the
riot
that avoidance learning
it
no small
is
basic
»
task to
contemplate how they might change.
Once we have adopted
has had
it
riot
learning to
occur.
k.ey
can
opportunity for such
there has
if
be developed
wartime in military units.
each
very
other*
a
Quick. ly*
Thus*
one
arid
was
turnover of
history of
a
shared way
of
often observed
iri
postulated
could
strength* clarity* and degree of iritegration of
a
terms of
collective social
collective*
as
in
been low
positioris of influence*
e;;perierices with
thinking
ari
cijlture cari be answered
a
For example*
people* especially in
intense
learning model of culture* the Question of
organization has
whether every
whether or
a
that
corporate culture
the
or
sub-culture is directly proportional to the stability of the
membership
together*
the
of
arid
the
iri
group*
tensity
the
length
of
time
of the collective
group has
the
beeri
learning which has taken
place during that history.
Notice*
by
the way*
that
if
one adopts
such
corporate culture is learned* one cannot simply CREATE
a
a
view of
how
strong culture
-
12 -
by executive 3ction»
Such
decisions to
manaaerial
culture evolves through shared history not
a
have
always adopt the approach of
strong managerial
created
strong culture.
Of course*
South African chief executive
sending them
teams by
Whether
together.
safari
a
a
such
model
a
off on
one can
know who
I
dangerous
a
escalated to
can be
total
organizations is something we can all speculate about.
This approach also deals with the problem of what is
culture.
group within
Any
an
organization
the potential
has
developing its own culture if it has stable membership and
Joint problem
solving.
organizations
team*
arid
variety
a
of functional?
other cultures which*
organization can
if
from the point
there is
a
giveri
geographic* rank level* project
be thought of validly as
total corporate culture*
of
history of
a
to find within
we would expect
Thus
sub-
a
orie*
'
of view of
sub-cultures
»
*
the total
Just as the
can be thought of as
culture* vis-a-vis the larger society in which that
conipariy
"sub-
a
operates.
SELF INSIGHT AND CULTURE CHANGE,
organizational culture* what can we say about
Given this model of
the pro's
con's of obtaining
arid
does this relate to
insight into this deep level*
The answer depends
orgariizational culture change?
itself*
on the circumstances in which the organ izatiori finds
illustrates.
I
am hypothesizing
as Chart
uPon
the degree
change*
that the kind
to which
either because
of
3
that the culture issue is different at
different stages of development of an organization (Davis* 1982).
also hypothesizing
how
arid
of change which
the organization is
some externally
internal forces toward change (Scheiri*
1980).
is
3iti
possible depends
unfrozen and
induced
I
ready to
crisis* or
some
-
13 -
Chart
private organizations
identified in
maJor culture issues
what the
developmental
three msJor
shows
3
are»
periods
that can
be
and for
each period hypothesizes
how much
self-insi3ht is crucial?
>
and what change mechanisms are likela to he operating.
BIRTH» GROWTH* FOUNDER DOMINATION AND SUCCESSION
am i^norinS»
processes and
anywhere
together
lumpina
am
I
from
organizational
whole host
a
for the moment*
years
few
a
here
to
culture serves
the
rapid Growth
expect
to
see
and the
strong
control mechanisms*
arid
the organizational cijlture*
culture is as
a
the
critical function
of holding
the
influx
matures.
of many
3S
3
distinctive
One misht
become
almost
because members recognize how critical the
force toward integration.
source
of
competence
identity
can
distinctive competence*
a
Assumptions
strength.
and
organization's
the
irivolve
rapidly SrowinS company
arid
newcomers.
strong defensiveness arourid
miaht observe
processes* structijre* or even relatiori ships.
yoijnd
is the Slue that
It
processes which
In this stase one can see the culture as
3nd
can last
this sta^e
socialization
orie
and
At
orslanization together while it 3rows and
permits
that this sta^e
decades.
few
a
sub-stages
of
in the
For eicample*
service
lawn
about
products*
I
^.riow
b'jsiriess
of
3
which
has chosen their employees not their customers or stockholders as their
primary
stakeholders.
maintenance people
the
theory
that
All
their
truc^.
fully understand the
if
the
employees
drivers*
secretaries*
economics of the
feel
totally
and
business on
committed
arid
professional* they will see to it that customers are found and are well
treated.
The continued success of the business
to maintain such
identification with the
hinsies on the
3bility
core mission on the part of
3
-
14 -
rapidly ^rowin^ work force.
critical in that
Self-insiaht is
recodnize what
their source of strength really is»
achievina that
insiaht is not easy
the positive and
may have
company
Gotten where
because one only wants
this sta^e.
ruthless competition
is by
it
to look at
A
in the
internal weeding out of incompetents? but it
riecessarily want
not
but the process of
desirable Qualities of the culture at
market place and ruthless
does
for members to
iniportsnt
is
it
to
self-imaSe
accept that
as beina
its
distinctive competence and source of strength.
the period
During
dominant in
still
change but
evolve
a
the
»
one
primarily
because
it
Culture CHANGE becomes an issue
founder.
the
1)
company
runs
into
economic
integrate* maintain? and
is
orily
culture
expect little
may
of effort to clarify?
^reat deal
family is
the founder's
founder or
organization
the
culture?
the
wheri
with
ideritified
the
under two coriditiorist
forcing
difficulties
key
managers to re-evalute their culture? or
succession from
2)
the founder
managers forces
to professional
assessment of what kind of successor to pick.
How then does culture charisSe happen
in this stade?
I
believe one
can identify four mechanisms?
1)
Natural evolution? survival of the fittest?
2)
Self-Guided evolution through organizational therapy?
3)
Managed evolution through selection of hybrids?
4)
Managed evolution through introduction of key outsiders.
MECHANISM
1.
much external
NATURAL EVOLUTION.
If
the organization
stress and if the founder or
is not under
too
founding family are around
-
15 -
for
3
time» the culture simply evolves in terms of what worKs best
lonsi
Such evolution involves two basic processes!
over the years.
a)
evolution toward the
General
complexity*
diversification*
integration* creativ©
elements
higher
levels
of
development?
i.e.
differentiation
and
syntheses into new and hisher
level forms.
operate as defenses
culture which
of the
next stasfe of
are likely
The
to be
retained and strengthened over the years.
b)
evolution or the adaptation of
Specific
organization to their
company
will develop
products
compariy in
marketirisi
skills.
specific parts of the
particular environments.
hiahly refiried
In each case such
a
hidh technology
skills* while
D
%
cosmetics
foods or
underlying assumptions
R
Thus
will develop
a
consumer
highly refined
differences will reflect important
about the nature
of the world*
the actijal
arid
Growth experierice of the oraanization.
MECHANISM
orie
2.
thirik.s
uncertainty
SELF-GUIDED
of culture as
anxiety*
and
organization to
permits
then
cognitive
be
able
and
to avoid
help
to
weak.ri esses
of
the
its
to
through creating
occur*
and thereby
self-insisht
cari
produce
Outsiders are necessary for this process to unfreeze
psychological safety*
present defensive nature of the
process
defense mechanism
should
one
operates
redefinitiori
organization* provide
the organization
a
If
that is necessary for survival and effective
Therapy which
dramatic chansies.
the
beinS in part
assess for itself the streriSths
culture* and modify it if
functioning.
EVOLUTION THROUGH ORGANIZATIONAL THERAPY.
how the culture
of cognitive
culture*
help to
reflect back to key people in
seems to be operating*
re-definition
arialyze the
(Schein
%
and help the
Bennis* 1965*
Schein*
-
16 -
1969)
.
this process
Uhen
because
works» usually
the client
is
highly
motivated to chande? dramatic shifts in assumptions can take place.
know of one company that could not make
3
of defining marketing
history
a
in very
crucial transition because of
cannot really
that marketing
losind the 3ood
led
insiaht
irito
i.e.
marketers and
Only when key executives
marketing*
defined
they
how
This assumption*
to hiring poor
ones which the company had.
personal
real
had
help*
merchandising terms>
limited
hencer seeing little value in the function.
and*
I
and
co^nitively redefined the function in their own mind* were they able to
adopt the assumption that marketing could help.
Much of
the field of planned
change and organization development
The assumption has
operates on the therapeutic and self-insiaht model.
system is unfrozen*
made that the
to be
change*
and that there
motivation to
readiness for self-insi3ht however much pain
before they recognize their need
do not seek the
they often
there is
Organizations sometimes have to det into real
that misJht entail.
trouble* however*
is
i.e.
for help*
and theri
Sadly* organizations
ri^ht kind of help.
are no different in this regard from individuals.
of course*
This would model of change is*
chan2in3
individual
life course
or
a
direct parallel to an
personality as
a
result of
an
intensive therapeutic process which emphasizes insiaht as critical.
Powerful
belief change
example*
in
the
interrogators to
of*
the
can occur
studies of
with
prisoners
cognitive redefinition.
For
under pressure
from
of
confess to crimes which they
crucial change came
insight that his or her
war
felt they were innocent
about when the prisoner
suddenly had the
definition of crime* ^uilt* and innocence were
.
-
17 -
placet
had taken
the captor.
from those of
3ll different
i.e.
recognizing that
Once cognitive redefinition
from the point of
view of the
CBptor certain previously unrecognized things were defined as crimes»
possible to change one's view of oneself (Schein» 1961).
it was
MECHANISM
CHANGE THROUGH HYBRIDS. One process which
3.
captured by the feelina 'we dont
several companies is
doina in the way of chan^inS
dont Quite
for key
have seen in
like what he is
the place? but at least he is one of us.'
organization's leaders recognize the need
the
If
I
but
beain to systematically select
know how to ^et there* they
Jobs those members of
for some change*
the old culture who
best represent the
new assumptions that the leaders want to implement.
For e;;3mple>
in one
rapidly ^rowina company
of movind from the assumption that
for ourselves
to function
arid
is
to make some
has increasingly
»:!ouri^er
maria^ers
disciplined ways
the way to function is to all think
exercise local optiori? to the assumption that the way
decisions at the top and implement them in
an efficient and disciplined way.
CEO
there is the problem
To 3et to this way of operating the
selected for
who
have
senior manasemerit
grown
of doina thinas»
in and
up
i.
e.
positions those
believe
managers with
in
a
the
more
manufacturing
background
Formal management
finally
sijccessiori when
relinouishes coritrol
provides
direction of the cultijre if the
representing what is rieeded
seen
3
as
acceptable "because
conserver
of the
the founder
or foundirig family
to change
an opportunity
successor is the right
k.
the
ind of hybrid?
for the organization to survive? yet being
he
old culture.
is
one of
us*
An interesting
and therefore
special case
also
is
to
.
-
18 -
create
an outsider who
hybrid by having
a
successor to
the founder serve for
is beind
"broomed"
number of years
a
as the
on the Board of
Directors and becoming thereby partially acculturated
MECHANISM
4.
CHANGE THROUGH KEY
succession process of
and drowin^ company to turn to outsiders
younS
a
grounds that the organization needs to be
to fill key positions on the
managed*
'professionally"
more
uncommon in the
OUTSIDERS. It is not
that is»
needs
modern
brina in
to
Turning
management tools which the founder is often perceived to lack.
to
outsiders is
most
also the
lik.ely course
if the
compariy is
in
economic difficulty due to perceived inefficiencies associated with the
old culture.
Gibb Dyert
change mechanism
several
iri
Graduate students?
our
one of
ordanizatioris
has found what appear to
arid
Assuming
be the key conditioris for this process to work..
outsider is
that the following
appear
develops
kind
sense of
a
failure in
of
assumptions*
many of
origin* causing
new leader's
and if
outsider
an
skepticism*
program.
the new leader is
the
it
would
hybrid*
of decliniriS perform a rice
and concludes
is
brought
in
it
with
assumptioris brought
but we cant
iri
a
new
different
culture of
even sabotage of
organizational performance
^iven credit for the
or some
needs
with the
resistance* and possibly
If
like his approach*
a
that
prototypical--the organization
which immediately conflict
will survive and the new
"Ue dont
marketplace
the
merely
not
scenario is
crisis because
approach?
managerial
the
as different?
really seen
at this
has looked
improves*
improvement* he or she
will beSin to operate.
ar^ue with the
fact that he
made us profitable once a^ain* so maybe we have to try the new ways.'
-
19 -
If
the new leader is
does not occur? or
improvement
not aiven credit
for what improvement does occur* he or she will be forced out.
DIVERSIFICATION AND ORGANIZATIONAL MIDLIFE
Let
us
next
look
established and
organization is
continued growth
through
growth
arid
and
cost
its
issues
of
maintain itself
Uhether or not
geographic
organisational
very different situation.
a
must
renewal process.
further
products* opening
cultural
are now facing
mid-life. It seems to me we
The
the
at
expansion*
development
markets* vertical integration
resource
position*
Where culture
was
mergers
likely that the most important
to improve
acauisitions
the growth period*
elements of the culture have
embedded in the stnjcture
institijtionalized or
and
new
of
»
maJor strategic issue.
a
necessary glue in
a
a
to pursije such
up of new
divisionalization* or spin-offs becomes
through
riow
it
is
become
and maJor processes of
the organization* hence consciousness of the culture and the deliberate
attempt to
iritegrate
bijild*
early years now comes to be
slogans* written
charters and other public
wants to
theories (Argyris
At this
and claims
S
Schon*
crisis or
boring
company
values and
its espoused
aiak.e
decipher the culture
is so embedded
people
problem to be solved.
and irrelevant*
dominarit values*
1978).
people aware of it because it
to
The only elements that
pronouncements of what the
stand for*
is difficult to
stage it
be counterproductive
to
become less
has acauired during its
taken for granted.
conscious are the credos*
likely to be
company
the culture has
cori serve
The culture that the organization
important.
are
or
routines.
aware of it unless
Managers
especially if
in
and make
It may even
there is some
view culture discussions as
the company
is large
and well
-
20 -
establ ished.
this sta^e there may be strond forces
would hypothesize that at
I
toward loss of intedration because powerful
toward cultural diffusion*
sub-cultures
maintain
a
differentiated
important it
integrated
highly
orsianization
is for
all
of
uniform
culture
develop their own cultures?
3
is
in
a
is
not
larder
more
clear
how
culture to be uniform
have worked with have spent
on
a
common culture?
worth it?
Is there even
sub-unit which
a
On the other hand?
situation st all?
difficult to
it
a
the auestiori of whether to attempt to
costs associated with such an effort
a
I
try to build
in some cases?
will impose
it
the elements of the
^ood deal of time wrestlirid with
that one
culture
Furthermore?
.
Several conglomerates
and integrated.
preserve? or
and because
the system?
develop in
if
Are the
a
dander
midht not fit its
sub-units are all allowed to
what is the competitive advantage of beind
single ordariization?
Geographic
e;;
pa nsioris?
new technoloSies?
whether
the
compatible.
is that
all
cultures
mergers
reauire
to
be
the cultural
issue is
conditions which midht
integrated
or
understand as
complex
arid
merged
to determine
are?
iri
fact?
about this stade? then?
diverse.
One midht alniost
are so niany different kinds of possible
healthy
coni pa nies
should
much as possible about cultural dynamics.
be reauired
If
Growth? diversification? acQuisition?
find themselves
in
situation? they
would then have
a
reductions of
reauire some management of the cultural issues?
mature
e;;ecutives of
irit
careful self-assess tiierit
The maJor coriclusiori to be drawn
ardue that in this stade there
that
a
and acauisitions?
manage the cultural issijes.
the necessary skills
to
they then
or merser
to diadnose and
-
21 -
internal conditions change and create
If external or
then suddenly the culture
for improvement f
salient.
If
competition*
the
environment
new
technologies*
problems effectively.
need
issue becomes relevant and
crisis
a
changing
because
market
changes* the organization may not
or socio-political
managers now
creates
a
It only knows
deeper
niotivation
a
of
new
conditions?
be able to solve
its own slogans and
level of self-insiaht into
myths.
Key
the content of
their culture and into the cultural process that is probably Soin^ on.
Four mechanisms
of culture change
seem to me to
be relevant at
this sta3e in addition to the four which have been mentioned abovet
organization development
5)
Planned chande
6)
Technological seduction
7)
Change through scandal* explosion of myths
8)
Logical iricrementalism
MECHANISM
arid
PLANNED CHANGE
5.
AND ORGANIZATION DEVELOPMENT.
Much of the
work of organization
development practitioners deals with the knitting
together
and
of diverse
coalition
or
integrate
constructively
(Beckhard
%
conflicts
between
the
functional 3rouPS
divisions*
creation
and
commitment
of
client
1977).
functional
on*
all
commitment
always seems
which
to
or*
in
dominarit
how
out
different
headouarters/f ield
aroups*
reouire
to figure
agendas of
Thus
and project Groups*
so
system
multiple
the
interventions
of
development
managerial
Harris*
helping the
warririd sub-cultures*
droups
conflicts*
matrix*
a
to
between
destructive competition between
cultural
permit
the
insisht
the
mutual
superordinate
to involve both
understanding and
company
and
sioals.
self-insisht into
Such
one's own
'?'?
the assumptions of other sroups with whom
sssuiDptions and insiaht into
one feels in conflict.
MECHANISM
TECHNOLOGICAL
6.
SEDUCTION. This is
Isr^e category
very
3
which includes the diffusion of technological innovation at one extreme
deliberate? managed introduction of
and the
specific technologies for
the sake of seducing organization members into new behavior which will»
beliefs? and assumptions?
reauire new values?
in turn»
For
extreme.
e;;
ample?
in
senior management sees too
situations where
much cultural
diversity? it often introduces
•progressive*
technology which
has the
at the other
a
effect
seemingly 'rieutral' or
of ^ettina
people to
think in common terms.
For
e;;
am pie?
around notions like the Blake
training built
1969)
Houton?
many companies have introduced programs of leadership
provide many layers
order to
in
common vocabulary and common
a
niore
of management
with
S
3
concepts that make it possible to develop
integrated uriiform set of practices across diverse aroups in the
several
layers
training courses
function
practice of introdijciri^
The currerit
orsJariisation.
to
Managerial Grid (Blake
of management?
may be
iri
tended
the
to serve
a
mandatory attendance
similar
at
kind of ijnifyins!
«
Ue should?
of course?
recognize that one reason why so many people
resist such new technologies
assumptions are bein3
not only
and
persorial computers
is
because they sense that their cultural
challenged and threatened. Technological changes
disrupt our behavioral patterns
possibly change our uriderlyin^ ass'jmptions.
but force us to
look at and
j,
-
23 -
MECHANISM
THROUGH SCANDAL*
CHANGE
7.
clear whether one should call this
kind of event which can produce
matures it develops
Arayris
what
while* at
the same time*
label
For example* an
may make
it
that
virtually impossible
rational decision
uses
it
introducing new
research in
accurately reflect
organization may espouse that
making aeossraphical
refuse an
for people to
that if one refuses* one de facto
An organization may espouse
off the promotional track.
takes oneself
theories?*
operate by other assumptions
consideration in
assislnment because of the assumption
company
a
set of myths about how it
a
and which more
'
is not
It
As
labelled 'espoused
it continues to
needs into
takes individual
moves* yet
have
theories-in-use
^qes on.
what actually
it
'
powerful culture change.
Schon
i
MYTHS.
mechanism or simply note it as one
positive ideology and
a
operates?
which they
a
EXPLOSION OF
making
techniaues
products* yet
impossible to
find it
n^ay
market
based on
challeride the biases and pet projects of certain key niana^ers.
It
where such incongruities exist between
is
theories
that this
change mechanism
applies
espoused and in use
changes until the conseouences of the theory in use create
visible scaridal
that cannot be
executive* who has
unsafe and
been posted to
his note makes it
suicide* and
him into
hidden*
it.
A
product
members of
position he
the organization leak
reassessed as incon3ruent.
a
A
senior
the company pushed
turns out to be
the fact that
problem all alonS.
in such
public and
did not want* commits
clear that he felt
of the culture
a
avoided* or denied.
fails in the market place or
market research had shown the
expose an element
a
Nothing
most clearly.
their own
Such events suddenly
way that it is immediately
Strong policies are then immediately put in
place to change the assumption which was operating.
-
24 -
The
which
uan in
managed* but
evolutionary than
where managers
described
have
I
this mechanism
suppose one could
I
actually engineer scandals
it
more
is
imagine scenarios
in order to
induce some of
the changes they wantt
LOGICAL INCREMENTALISM
MECHANISM 8.
under the discretion
decision area
in every
that
consistently biased toward
decision is
that individually
introduced
each decision
by Quinn
incremental ism
Logical
.
new set
a
what
manaSer? the
a
of assumptions?
change.
is a small
to describe
(1978)
of
he saw
where
eventually
they
opportunities to
events
move
to
3ub-systems
to
as the
ori
Key leaders
system
the
compete for
they
in
desired
a
their solutions
look.
of fortuitous
Different
direction.
manaSement resolves
and top
the issue by selective support as the external situatiori reouires
Such
time»
process chari^es the
a
especially
replacement
if one
people
of
in
culture slowly over
of such
set
key
by people
loriS
it.
period of
the
different
with
processes are» in this
Executive selection and staffing
assumptions.
a
decisions is
incremental
positions
for
they worked
constantly test how
opportunistic utilization
the
actual
clear concept of
a
Instead
up.
erid
make small chan3es»
and concentrate
out?
want
thou ah they have
but
concept was
The
process by which strategy is implemented in organizations.
do not create massive changes even
means
sense? one of the most powerful processes of cultural chansie.
In summary?
organizational mid-life
need
orslanization
is
to
and
be
most
where
the period
when managers
and how to manaSe cultural
have the most choice of whether
therefore
is
aware
it
is
of
how
3oina.
to
If
diagnose
issues? and
where
oraanizations
the
face
-
25 -
increasingly turbulent environments* one miaht well advocate not STRONG
FLEXIBLE CULTURES* where flexibility
CULTURES* but
hinges on cultural
diversity rather than uniformity.
ORGANIZATIONAL MATURITY AND/OR STAGNATION AND DECLINE
last staSe
next and
The
the point
from
important
he considered
to
view of
of
culture
is perhaps
the most
change* because
some
organizations find that pieces of their culture or their entire culture
become disf unctional in
If
company
a
dynamic competitive environment.
a
had
has
track
a
record of
assumptioris about itself and the environment*
challenge or
re-examine those assumptions.
consciousness it tends to want to
it
success with
certain
is unlikely to want to
Even if
it brings
them to
hold on to them because they Justify
the past and are the source of oraanization members'
self esteem.
assumptions
difficult
now operate
as filters
which make
it
Such
for key
managers to understand alternative strategies for survival and renewal*
no matter how clear the strategy consultant's data and argument tend to
be.
if
Everi
because
they
down the
are
ijnderstood they
line in
often cannot
the orSanizatiori the
be implemented
new coricepts
are not
comprehended or accepted.
Unless survival
anxiety is at least as hi3h
accompanies
aivin3 up
change will
be aroused.
preserit
cultural solutions*
a
dark room*
bein^ chased
room*
I
by
a
I
man
no motivation
put the matter metaphorically*
To
learned to fear dark rooms because
sent to
as the anxiety which
I
a
^un
I
have
have always been punished by beiri^
will avoid them whenever possible.
with
if
to
and the only alternative
will forSet my other fear and hide in it to survive.
But if
is a
I
am
d3rl<.
-
26 -
example*
For
research now
faces
has built
which
s
company
a
world in
which it is
basic
success on
its
clear whether there is
riot
much left to be invented? where patents have run out? and where younger
more flexible competitors are threatening.
but the culture is built around research
more innovative in marketing?
and the creative marketers have
caught
dilemma are
challenge
overrule
and
offer
culture
in that
research
powerful
that
a
who can see
really
a
the
On
people.
person's own
or to accept it are both signs of weakness.
no-one knows
change? but
still
but it
they cannot
Job is
is
potentially
irisultirig
her Job.
recipient does not know his or
implies that the
for
the
informatiori
help or
market place
Even those senior managers
the
To ask for help?
fiefdom.
the
the culture dictates
interpersonal side
To
in
department itself
The research
responsive to
it knows best.
believes that
the
more
to become
needs
hard time letting the attention from
a
they need.
management which
senior
The company needs to become
how to get
iri
that
i+.
Everyone is
the anticipated
there? and
anxiety of real self-examination effectively keeps that from happening.
this kind
In
of
parts of the
transformation of
culture to permit
become adaptive once again? what can
to
destroy the
MECHANISM
9.
a
between more
rapid
the organization to
be thought of as
its culture through
group and
REORGANIZATION via
choices are
situation the
a
TURNAROUND? or
some process
of TOTAL
merger? acQuisition? or bankruptcy proceedings.
TURNAROUND.
The first condition
for change through some
kind of turnaround is that the organizational culture must be unfrozen.
Either
because
of external
realities
survival or because of new insights
which threaten
organizational
and plans on the part of the Board
.
-
of
27 -
the dominant
Directors or
mansSettient coalition*
the organization
must come to recognize that SOhE of its past wa^s of thinking* feelinsi»
and doinS things are irideed obsolete.
If
the organization is
if there
is
1)
a
turnaround
change culture to
organizational
managing
2et there*
change is
go»
the power
the process
theory
change
needs to
and 4)
lacking*
these is
any of
manager or team with 2)
the organization
direction where
If
unfrozen in this sense* change is possible
that the
enough
to create
3)
clear sense of
a
model of
a
how to
to implement the model.
will fail.
key
know from
Ue
to unfreezing
both
psychological safety
and
to permit
members to bear the 3ri;;ieties which come with re-examining and changing
parts of their culture.
insight and
riecessary
without
The turnaround niariagement system mijst have the
to manage
defensive
arousirig
replacement of
skill
resistarice.
people in key positioris is
be managed in
such
way that it is
a
all
of
the above
example*
For
nisjor
if
that process must
irivolved*
seen as necessary and carried out
some of the deeper cultural assumptions
accordirig to
n<ech3nisms
which
rieed
to be
preserved
Effective turnaround managers use ingenuity and draw on all of the
mechariisms reviewed
so far.
technological seduction
company
was
concern for
mark.etirig
seal painted on them*
acnuired
arid
a
in the
its
losirig
For example*
following way.
competitive
itself.
a
old delivery
staid
it
gray
indicating its 100 year history.
turriarourid itiariager was put
of
A
edge because
Its trucks were
he wanted the trucks painted white*
one could think
one turriarourid mariager used
in charge.
lack.ed
arid
had
a
real
a
royal
The company was
He decided that
causing great coristernatiori* but no
decisive argunient to reverse
the decision.
Orice
«
-
28 -
what would
and ssked
on the sides*
be put
would*
fact*
in
advertise themselves.
seduction at its best* but* of course*
superficial part of the
Setting employees
at all
the nature of their business and how
levels involved in thinkinsT about
they
street bessn to notice them
in the
people
3ll the trucks were painted*
This is
technological
it also dealt only with
a
fairly
Deeper assumptions cannot be changed
culture.
so easi ly
Turnarounds
developing
some new
redefinition
through
of
cognitive
structure and processes
to
arid
the
clearly
involvement
wide
insight into
become
Qualities
disfij notional
process
that
members so
organisation
involve
usually
the old
visible
teaching*
all
culture and
its
to everyorie.
then
assuniptions
of
is
coaching*
a
process
changing
The
of
the
where necessary* corisisteritly paying atterition
rewarding evidence
of
ways* creating
new
learriin^ the
riew
slogans* stories* myths* and rituals* and in other ways coercing people
into at
least new behavior
(Schein*
1983>.
All
the other mechanisms
described above may come into play* but it is the willingness to coerce
that is the key to turnarounds.
MECHANISM
REORGANIZATION
10.
understood about
Suffice it
the carrier of
a
and whatever new
culture.
a
is
known
or
about it here.
one destroys physically the
^roup which is
Siven culture* by definition that culture is destroyed
3roup begins to function begins to
build its own new
This process is traumatic and therefore not typically used as
deliberate
at stake.
Little
REBIRTH.
little will be said
this process* so
to say that if
AND
strategy* but it may be relevant
if
economic survival
is
-
29
SUMMARY AND CONCLUSIONS
would like to sunimsrize my analysis by drawing attention to five
I
mistakes
that need
culture.
I
1)
be avoided
to
thinkinst about
in
organizational
will put them in the form of DO NOTSt
not oversimplify culture?
Do
it
^oes beyond slogans? behavior
patterns* and values* to basic assumptions.
2)
not fordet how culture is learned?
Do
human relations
social structure
truth*
made*
Do not limit your thinkiriS
beyond
sioes
traumatic avoidarice
remember that people will resist change.
learning is involved*
3)
if
arid
into
about areas of culture content*
fundamental
concepts of
organization desi^ri*
it
reality*
how decisions
are
and so on.
4)
Do
that culture change
not assume
least the 10 mechanisms outliried above
5)
Do not assume that
it deperids
ori
the stade
state of adaptive n ess.
e;'>istent*
understand
arid
arid
arid
is simple*
irivolves at
it
probably many more.
more culture or stronger culture is better*
of evolution of
its current
the compariy and
Instead of seekind that elusive* possibly
nori-
possibly darisierous thin^--a strong culture--try to
seek,
the
strength of the
culture you already
have in
your organization.
Keep
friendly
you insight
animal that
really understand it.
level hiah
can be
and face
tamed and
culture as
made to work
a
potentially
for you
if
you
REFERENCES
Ar^yrisF C. i Schon>
Addison-Uesley
»
D
.
A.
OrgBriizatioriBl LeBrning.
Resdin^T Ma.l
1978.
Orgsnizational transitions.
Beckh3rd» R. % Harris? R. T.
Ma.: Addison-Uesley» 197?"!
Reading*
"
Building a dynamic corporation through
Blake* R. R. I Mouton» J. S.
Ma
Addison -Uesiey»
Read i a
grid oraanization development
1969.
ri
.
»
.
!
D3vis» S. M. Transforming organizations: the key to strategy is
Winter* 1982» pp. 64-80.
context. Organizational dynamics
.
Peters* T. J. X Waterman* R. H. Jr.
Harper* 1982.
In search of
excellence
Strategic change: 'logical incremental ism'
Management Review* 1978* 20* 7-21.
Quinn*
J.
B.
Schein* E. H.
Coercive persuasion.
N.Y.: Norton*
Organizational Psychology* 3d ed.
Schein* E. H.
N.J.: Prentice-Hall* 1980.
Schein* E. H.
culture.
.
N.Y.:
Sloan
1961.
Englewood Cliffs*
The role of the founder in creatirig organizational
Organizational dynamics* Summer* 1983* 13-23.
Schein* E. H. % Bennis* W. G. Personal and organizational change
through group methods. N.Y.: Wiley* 1965.
CHART 1
ORGANIZATIOKAL CULTURE
E.H. Schein
DEFINITION: Organizational culture is the pattern of basic ass\ai5)tions which
a given group has invented, discovered, or developed in learning to cope with
its problems of external adaptation and internal integration, which have 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.
EXTERNAL ADAPTATION ISSUES (PROBLEMS)
Cultural elements derive from consensus on:
CORE MISSION, MANIFEST AND LATENT FUNCTIONS, PRIMARY TASK
GOALS DERIVED FROM MISSION
MEANS TO BE USED TO ACHIEVE GOALS
CRITERIA FOR MEASURING RESULTS
REMEDIAL OR REPAIR STRATEGIES
1)
2)
3)
4)
5)
INTERNAL INTEGRATION ISSUES (PROBLEMS)
Cultural elements derive from consensus on:
1)
2)
3)
4)
5)
6)
COMMON LANGUAGE AND CONCEPTUAL SYSTEM - TIME AND SPACE CONCEPTS
GROUP BOUNDARIES, CRITERIA FOR INCLUSION
STRATIFICATION: CRITERIA FOR ALLOCATION OF INFLUENCE, POWER, AND
AUTHORITY
PEER RELATIONSHIPS: CRITERIA FOR INTIMACY, FRIENDSHIP, LOVE
ALLOCATION OF REWARDS & PUNISHMENTS
RELIGION AND IDEOLOGY: HOW TO MANAGE THE UNMANAGEABLE
BASIC UNDERLYING ASSUMPTIONS
The essence of the culture will be the PATTERN of underlying assximptions
dealing with the following core areas:
1)
2)
3)
4)
5)
MAN'S RELATIONSHIP TO NATURE: ORGANIZATION TO ENVIRONMENT
THE NATURE OF REALITY AND TRUTH
THE NATURE OF HUMAN NATURE
THE NATURE OF HUMAN ACTIVITY
THE NATURE OF HUMAN RELATIONSHIPS
Different basic assumptions evolve to deal with the external and internal
issues.
Their inter-relationships and patterning makes up the cultural paradigm
for a given group.
©
1983
.
CHART
:
;
3
OPGANIZATION GROWTH STAGES AND CULTURE ISSUES
GROWTH STAGE
CULTURE ISSUE
Birth, early growth,
fovmder domination, succession
to "professional mamagement"
1)
2)
3)
4)
5)
6)
,
CHANGE MECHANISMS
Culture is the "glue" which holds
the organization together;
Culture is source of identity and
a distinctive competence;
Drive to integrate and clarify culture
Heavy emphasis on careful selection
and socialization;
Potential successors judged on
whether they will preserve culture;
Self-insight into culture critical.
Natural evolution
1)
CHANGE MECHANISMS
Self -guided evolution through org.
2)
Evolution through hybrid;
therapy;
3)
Evolution through key outsiders.
4)
;
Diversification and
Organizational Midlife
New products/markets
1)
Geographic expansion
2)
Acquisitions, mergers
3)
Vertical integration
4)
1)
2)
3)
4)
5)
Cultural integration declines as new
sub-cultures are spawned;
Crisis of identity, loss of key
goals, values, and assumptions;
Opportunity to manage direction
of cultural change;
Decision for cultural uniformity or
diversity;
Cultiiral self -insight important.
>.
Planned change
CHANGE MECHANIS.MS
1)
cmd OD;
Technological seduction;
2)
Change through scandal, myth
3)
Logical incrementalism,
explosion;
4)
;
Organizational matiirity,
stagnation, decline
Maturity of markets
1)
Stabilization of internal
2)
relationships
1)
2)
3)
4)
Culture becomes a constraint on
innovation;
Culture preserves the glories of the
past, hence is valued as a source of
self-esteem, becomes a defense.
Culture change necessary and
inevitable; but not all elements of
culture can or must change;
Self-insight important in order to
preserve essential elements of
culture, avoid destruction of core.
Turnarounds
CHANGE MECHANISMS;
1)
mergers,
Reorganizations,
2)
replacement of
Massive
takeovers
people
CHART
^
2
THE LEVELS OF CULTURE AND THEIR INTERACTION
LEVELS OF CULTURE
ARTIFACTS, CREATIONS
TECK!:0|j06Y
Art
VISIBLE BUT OFTEN
NOT DECIPHERA.RLE
Visible and Audible
Behavior Patterns
VALUES
GREATER LEVEL OF
AMARENESS
1
BASIC ASSUMPTIONS
Relationship to
Environment
Nature of Reality,
TiHE, AMD Space
Nature of Hunan Nature
Nature of Huhan
Activity
Nature of Huhan
Relationships
(c) Schein, 1983
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- INVISIBLE
- PRE-CONSCIOUS
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