Organizational Culture and Leadership by Edgar H. Schein

Last updated: Jul 22, 2023

Summary of Organizational Culture and Leadership by Edgar H. Schein

Organizational Culture and Leadership by Edgar H. Schein is a comprehensive exploration of the concept of organizational culture and its impact on leadership within an organization. Schein, a renowned organizational psychologist, delves into the various aspects of culture, its formation, and its influence on the behavior and performance of individuals and groups within an organization.

The book begins by defining organizational culture as a pattern of shared basic assumptions that a group has learned as it solved its problems of external adaptation and internal integration. Schein emphasizes that culture is not something that can be easily changed or manipulated, as it is deeply ingrained in the collective mindset of the organization.

Schein then explores the three levels of culture: artifacts and behaviors, espoused values, and basic underlying assumptions. He explains that artifacts and behaviors are the visible manifestations of culture, such as dress code, office layout, and rituals. Espoused values are the stated beliefs and ideals of the organization, while basic underlying assumptions are the unconscious, taken-for-granted beliefs and values that guide behavior.

The author highlights the role of leadership in shaping and maintaining organizational culture. He argues that leaders play a crucial role in setting the tone and values of the organization, and their actions and behaviors have a significant impact on the culture. Schein emphasizes the importance of leaders aligning their espoused values with their actions, as inconsistencies can lead to a breakdown in trust and credibility.

Schein also explores the concept of subcultures within an organization and the challenges they pose. He discusses the need for leaders to understand and manage these subcultures to ensure alignment with the overall organizational culture.

Throughout the book, Schein provides numerous case studies and examples to illustrate his points and offers practical advice for leaders on how to assess, understand, and change organizational culture. He emphasizes the need for a systematic approach to culture change, involving all levels of the organization and addressing both the visible artifacts and the underlying assumptions.

In conclusion, Organizational Culture and Leadership is a comprehensive and insightful exploration of the complex relationship between culture and leadership. Schein's expertise and extensive research make this book a valuable resource for leaders and managers seeking to understand and leverage the power of organizational culture.

1. The Importance of Organizational Culture

One of the key takeaways from the book is the recognition of the importance of organizational culture. Schein emphasizes that culture is not just a superficial aspect of an organization, but rather a deeply ingrained set of beliefs, values, and assumptions that shape the behavior and actions of its members. He argues that understanding and managing culture is crucial for leaders, as it directly impacts employee motivation, engagement, and performance. By recognizing the power of culture, leaders can shape it to align with their organization's goals and values, creating a positive and productive work environment.

Schein also highlights the role of leaders in shaping and influencing culture. He explains that leaders are not only responsible for setting the tone and direction of the organization but also for modeling the desired behaviors and values. By embodying the desired culture, leaders can inspire and motivate employees to adopt and embrace it. This insight emphasizes the importance of leadership in creating and sustaining a strong organizational culture.

2. The Three Levels of Culture

Schein introduces the concept of the three levels of culture: artifacts and behaviors, espoused values, and underlying assumptions. Artifacts and behaviors are the visible aspects of culture, such as dress code, office layout, and rituals. Espoused values are the stated beliefs and values of the organization, often found in mission statements or company policies. Underlying assumptions are the deeply ingrained beliefs and values that are often unconscious and taken for granted.

This framework helps leaders understand the different layers of culture and how they interact. Schein argues that to truly understand an organization's culture, leaders must go beyond the surface-level artifacts and behaviors and delve into the underlying assumptions. By uncovering these assumptions, leaders can gain insights into why certain behaviors and values exist and how they can be changed or reinforced to align with the desired culture.

3. The Role of Subcultures

Schein highlights the presence of subcultures within organizations and their impact on the overall culture. Subcultures are smaller groups within an organization that have their own distinct beliefs, values, and behaviors. These subcultures can arise based on factors such as departmental differences, geographic locations, or functional roles.

Understanding and managing subcultures is crucial for leaders, as they can either support or undermine the desired organizational culture. Schein suggests that leaders should identify and leverage the positive aspects of subcultures to reinforce the desired culture. By acknowledging and addressing the differences between subcultures, leaders can create a more cohesive and aligned organizational culture.

4. The Role of Leadership in Culture Change

Schein emphasizes that leaders play a critical role in driving culture change within an organization. He argues that culture change cannot be imposed from the top-down but requires active involvement and participation from leaders at all levels. Leaders must first understand the existing culture and its underlying assumptions before attempting to change it.

Schein suggests that leaders should start by identifying and addressing any misalignments between the espoused values and the underlying assumptions. This involves challenging and questioning the existing beliefs and values, and actively promoting the desired culture through their own actions and behaviors. By consistently modeling the desired culture and providing support and resources, leaders can create an environment that encourages and sustains culture change.

5. The Role of Symbols and Artifacts

Schein highlights the importance of symbols and artifacts in shaping and reinforcing organizational culture. Symbols are objects or actions that represent deeper meanings and values within an organization. Artifacts, on the other hand, are the visible manifestations of culture, such as office layout, dress code, or company logos.

Leaders can use symbols and artifacts strategically to shape and reinforce the desired culture. For example, a leader may introduce a new symbol or ritual that represents the desired values and behaviors. By consistently using and promoting these symbols, leaders can create a shared understanding and reinforce the desired culture.

6. The Role of Stories and Narratives

Schein emphasizes the power of stories and narratives in shaping organizational culture. Stories are powerful tools for conveying and reinforcing values, beliefs, and assumptions. They help create a shared understanding and identity within the organization.

Leaders can leverage stories and narratives to shape and reinforce the desired culture. By sharing stories that exemplify the desired values and behaviors, leaders can inspire and motivate employees to adopt and embrace the culture. Stories also help create a sense of belonging and connection within the organization.

7. The Importance of Learning and Adaptability

Schein highlights the importance of learning and adaptability in shaping organizational culture. He argues that organizations must be able to continuously learn and adapt to changing environments in order to thrive.

Leaders play a crucial role in fostering a culture of learning and adaptability. They must create an environment that encourages experimentation, risk-taking, and continuous improvement. By promoting a growth mindset and providing resources and support for learning, leaders can create a culture that values and embraces change.

8. The Role of Organizational Culture in Mergers and Acquisitions

Schein explores the role of organizational culture in mergers and acquisitions. He argues that culture clash is one of the main reasons why many mergers and acquisitions fail to achieve their intended goals.

Leaders must be aware of the cultural differences between the merging organizations and actively manage the integration process. Schein suggests that leaders should start by understanding and acknowledging the cultural differences, and then work towards finding common ground and shared values. By involving employees from both organizations in the integration process and creating a shared vision and identity, leaders can increase the chances of a successful merger or acquisition.