What is a Corporate Culture?

Question 1

Definition

Answer 1

“The culture of a group can now be defined as a pattern of shared basic
assumptions that was learned by a group as it solved its problems of
external adaption 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.” (Schein, 2004)

Question 2

Corporate culture includes basic assumptions in a company which…

Answer 2

 are not explicitly defined by contracts
 inform managers and employees
 constrain managers and employees in their decisions

Question 3

Three Levels of Culture (Source: Schein 2004, p. 24)

Answer 3

1. Artifacts
• Visible and feelable structures
and processes
• Observed behavior
(difficult to decipher)

2. Expoused Beliefs and Values
• Ideals, goals, values, aspirations
• Ideologies
• Rationalizations
(may or may not be congruent with
behavior and other artifacts)

3. Basic Underlying Assumptions
   • Unconscious, taken-forgranted beliefs and values
   (determine behavior, perception,
   thought, and feeling)

Question 4

Corporate Culture as Material Artifacts

Answer 4

 Corporate logos
- Iconic symbol designed to represent a company
- Intended to symbolize and convey the values and products of a
company
 Mission statements
- Defines the long-term vision of the organisation in terms of where it
wants to be and whom it wants to serve
- Often make reference to the purposes of the organisation, its principle
business aims, the key beliefs and values of the company, definitions of
its major stakeholders, and ethical principles which govern code of
conduct
 Corporate architecture
- Stylish buildings, office layouts, landscape gardening

Question 5

Material Artifact: Corporate Architecture

Answer 5

 Influence on behavior of employees
- How employees interact and communicate with each other and
customers and how they perform work tasks
- Examples:
– Friendly, inviting main entrance
– Glass-covered courtyard and glass lift cages
 Symbols of organisational opulence
- Company buildings often become “landmarks” in cities
- Represent status, potency and good taste
 Uniting symbols of corporate identity
- Photos of company building in advertising, annual reports
 Company history and buildings
- Buildings from company’s early days as sacred places

Question 6

Corporate Culture as Linguistic Artifacts

Answer 6

 Metaphors
- Word or phrase applied to an object or action which it does not literally
denote
- Dominant metaphors employed in organisational life:
– Chess (“pawn in the game”, “sacrifice”, “checkmated”)
– Military (“attacks”, “orders”, “defence”, “victory”)
– Church (“(false) prophets”, giving “sermons”)
 Stories and Myths
- Narratives of events often drawn from company’s history
- Important to indicate:
– Cultural values and beliefs
– Formal and informal rules and procedures
– Consequences of deviants from and compliance with rules
- Can often easily be recalled and generate beliefs

Question 7

Corporate Culture as Behavioral Artifacts

Answer 7

Ceremonies
 May be thought of as celebrations of organizational culture, or
collective acts of cultural worship that remind and reinforce cultural
values, e.g., annual well-orchestrated presentations, prizes, speeches

Rites and rituals
 “Rites of passage” facilitate changes in social role and status, e.g.,
training programmes, induction programmes, retirement dinners
 “Rites of questioning” challenge established order of an organisation,
e.g., use of external consultants, commissioning of critical reports
 “Rites of renewal” rejuvenate and refurbish status quo, e.g., employee
opinion surveys, job redesign programmes

Question 8

Espoused Beliefs

Answer 8

 Group learns that certain values, beliefs “work”
- Example:
Manager convinces team of solution which turns out to be successful
and, hence, transforms manager’s belief into shared belief
(and into shared assumption if it repeatedly turns out to be successful)
 Such a process of social validation does not always work (e.g. some
assumptions are not testable)

 Espoused beliefs

• remain conscious
• are explicitly articulated
• guide the group, reduce uncertainty
• train new members how to behave
• are often embodied in ideology or organizational philosophy
• can also be rationalizations or aspirations for the future

Question 9

Norms and Values

Answer 9

 Crucial to the definition of Corporate Culture
 But terms used differently in the literature

Should be differentiated:
 Value
Criterion according to which behavior can be evaluated
 Norm
Rule of conduct

Example:
 Value: Gender equality
 Norm: No sexist jokes should be told

Question 10

Basic assumptions

Answer 10

When belief turns out to solve problem repeatedly it is treated as
reality and becomes a basic assumption

 are strongly held and taken-for-granted (contrary assumptions are
perceived as inconceivable)
 are difficult to change
 constitute our “mental map”
 are rather unconscious
 define character and identity of a group

Question 11

Definition of Artifacts, Espoused beliefs an underlying assumptions

Answer 11

 Artifacts are typically observable, e.g. the language used, certain
ceremonies, the office building and layout or a formal philosophy.

 Espoused beliefs are typically consciously shared by a group and can
be explicitly stated.

 Underlying assumptions have repeatedly been proven to be
successful. They are deeply engrained in an individual’s beliefs and are
not easy to change.