Organizational culture, often referred to as the “DNA” of a company, dictates how employees interact, make decisions, and approach their work. In modern corporations, where agility and adaptability have become crucial, understanding and fostering a positive organizational culture is vital.
Renowned social psychologist Edgar Schein proposed that organizational culture operates at three levels: artifacts, espoused values, and assumptions. This article delves into these levels and their significance in shaping organizational behavior and outcomes.
Artifacts — In Organizational Culuture’s Perspective
Artifacts are the tangible elements of a culture that can be easily observed and felt. They range from dress code and office decor to company rituals and ceremonies. These visible elements play a pivotal role as they set the tone for the workplace environment.
According to a study by Harvard Business Review, companies with strong cultural artifacts observed a 20% increase in employee engagement, emphasizing their importance.
Types of Artifacts
Physical Artifacts: These include office infrastructure, dress code, and logos. For instance, Google’s vibrant office spaces encourage creativity and collaboration.
Behavioral Artifacts: Observable behaviors, company rituals, and ceremonies. For instance, a company might have a tradition of celebrating monthly employee birthdays.
Verbal Artifacts: These encompass company jargons, stories, and legends shared within the organization.
Impact on Organizational Performance
Artifacts are not mere superficial elements; they profoundly impact organizational performance. A Forbes study indicated that companies that effectively utilize artifacts to reflect their values see a 15% increase in overall productivity.
Espoused Values
Espoused values are the stated values and norms preferred by an organization. They play a vital role in guiding employee behavior and decision-making.
Process of Formation
Espoused values usually emerge from the company’s founding members or leaders and are often formalized in mission statements, codes of conduct, or organizational philosophies.
Alignment with Organizational Goals
When espoused values are in line with organizational goals, they drive collective effort. Companies like Apple, with its core value of ‘innovation,’ have successfully harnessed this alignment to drive product development and market leadership.
Assumptions
Assumptions are the deeply ingrained, often unconscious beliefs that guide behavior in organizations. They are the most challenging level to decipher but have a profound influence on organizational culture.
Explaining Assumptions
Methods like in-depth interviews, behavioral observations, or employee feedback surveys can help unearth these deeply held beliefs.
Impact on Decision Making and Behavior
Assumptions, although not always explicit, significantly influence decision-making and behavior. For instance, if an organization unconsciously believes in hierarchy, it might stifle open communication, impacting innovation.
Interrelationship Among The Levels
How Each Level Influences the Other:
Artifacts are manifestations of espoused values and assumptions. The values shape the visible artifacts, but beneath those values are the assumptions that drive behavior.
The Role of Leadership in Shaping and Navigating the Levels:
Leaders play a pivotal role. They not only set the tone through artifacts and values but also influence underlying assumptions through their behavior and decisions.
Assessing and Shaping Organizational Culture
Methods like the Organizational Culture Assessment Instrument (OCAI) or the Denison Culture Model can help companies assess their culture.
Best Practices
Open Feedback Systems: Creating platforms for open feedback can help in gauging the pulse of the organizational culture.
Inclusive Decision Making: Involving employees in decision-making ensures alignment with core values.
Regular Training: Periodic training sessions can help realign employees with the company’s core values and behaviors.
Challenges and Opportunities
Resistance to Change
One major challenge is employees’ resistance to change. It’s crucial to communicate the reasons for cultural shifts and involve employees in the process.
Leveraging Organizational Culture for Competitive Advantage
A strong, positive organizational culture can be a sustainable competitive advantage. Companies like Netflix have leveraged their unique cultures to drive innovation and market dominance.
Bottom Line
Organizational culture, operating at multiple levels, plays a pivotal role in driving performance, employee engagement, and overall success.
As companies evolve in the dynamic business landscape, understanding and effectively shaping their culture becomes imperative. The future will see an even more significant emphasis on cultural alignment, adaptability, and inclusivity.