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UVA-OB-0675
Primer on Organizational Culture
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This note was prepared by J oseph Harder as the basis for class discussion. The author thanks J ames Clawson, Sarah
Corse, Martin Davidson, and C.V. Harquail for helpful comments. This note was written as a basis for class
discussion rather than to illustrate effective or ineffective handling of an administrative situation. Copyright 1999
by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies,
send an e-mail to sales@dardenpublishing.com. No part of this publication may be reproduced, stored in a retrieval
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PRIMER ON ORGANIZATIONAL CULTURE


The notion of culture in organizations is not new, but there is much disagreement among
managers, consultants, and academics about (1) what organizational culture is, and (2) to what
extent it can be managed. This note is intended to provide a basis for understanding some
important aspects of organizational culture and to present a framework that allows for
developing a cultural understanding of an organization or group.


A Brief History of Organizational Culture

Culture as a concept originated largely in the disciplines of anthropology, sociology, and
political science. Some of the first mentions of organizational culture were in the early 1980s
with the publication of In Search of Excellence, by Tom Peters and Robert Waterman, Corporate
Cultures, by Terrence Deal and Allen Kennedy, Theory Z, by Bill Ouchi, and The Art of
Japanese Management, by Richard Pascale and Tony Athos. The early approaches distinguished
between strong and weak cultures and were largely oriented toward top-managements
stated values of what was important or desired for the organization.

Later approaches went beyond explicit statements of desired culture to focus on
underlying elements as well. Similarly, an awareness that along with a dominant culture there
might exist subculturesor even countercultures began to emerge. Finally, a focus on symbolic
interactionism emerged: the idea that cultural artifacts dont have meaning until human beings
attach meaning to them.


Defining and Analyzing Organizational Culture

Many definitions of organizational culture exist. One definition that seems to be thorough
and useful (capturing many of the essential elements of other definitions) comes from Edgar
Schein, who has studied leadership and culture extensively. According to Schein, culture is:


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The pattern of basic assumptions that a given group has invented, discovered, or
developed in learning to cope with its problems of external adaptation and internal
integration, and that 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 these problems (1985: 6).

Note that Schein and most contemporary writers on organizational culture see culture as
being a deep concept. Though it is relatively easy to experience cultural artifacts through our
five senses, this is not what Schein defines as culture. Rather, culture is the values and basic
assumptions that operate at a deeper level. A metaphor of an iceberg is useful here. Cultural
artifacts are like the tip of the iceberg we can observe them. However, there is much below
the surface. True cultural awareness involves understanding whats below the waterline.



Culture is pre-conscious; that is, most of the time it is below our conscious awareness,
but we are able to recognize it if we try. At the most accessible level are cultural artifacts. At the
next level are practices, which include formal policies, informal norms, and explicit statements
of cultural values. At the deepest, most difficult-to-reach level are actual values (values in use)
and taken-for-granted assumptions. Lets take each of these in turn.

Artifacts are cultural symbols of various types and could include:

Stories that are told about organizational members
Rituals or ceremonies (e.g., retirement dinners, sales meetings, new product
introductions)
Physical setting, including layout, architectural features, furniture, accessories, lighting
Mission, vision, or values statements, annual reports, recruiting materials, slogans,
banners or billboards, training materials, memos, or minutes of meetings

Above the surface: Artifacts

At the waterline: Formal policies,
informal norms, and explicit
statements of values

Below the surface: Values in use,
taken-for-granted assumptions


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Artifacts are surface-level representations of culture. They are oftentimes easy to observe,
but they require work to discover what they mean to members of the culture. For example, a
United States flag can be a powerful symbol and can mean very different things to different
people at different times. For example, the U.S. flag might be saluted, waved, burned, or worn as
clothing. Each of these practices might have different meanings and evoke different responses.
Notice, too, that the artifact may have no symbolic meaning at a given time, as, for example,
when a flag is folded up and tucked away in a drawer.
1
Artifacts are only interesting in a cultural
sense when they have meaning to humans.

Practices include both formal policies and informal norms. Formal policies could
include:

Items included in policies and procedures manuals
Organization charts
Hiring methods
Orientation activities
Appraisal and reward systems
Promotion guidelines
Signature authority
Dress code
Open-door policies
Fraternization rules
No layoff commitments
Distribution of perquisites, such as parking spaces, company cars, whether there is an
executive washroom or cafeteria

1
I am indebted to Mary Jo Hatch (1997) for this example.

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Informal norms could include:

Styles of interaction
Conflict resolution methods
Manner of dress (if no formal statement or if in conflict with policy)
Time orientation (e.g., do meetings begin five minutes late?)
Mutual respect
What is considered a fair days work for a fair days pay
Which rules to follow and which to ignore
Any other behavior that conflicts with, contradicts, or even subverts formal practices
Values and assumptions are the social principles, goals, and standards held within a
culture to have intrinsic worth. They define what the members of an organization care about,
such as freedom, democracy, tradition, wealth, or loyalty. Values constitute the basis for making
judgments about what is right and what is wrong. All of us have probably seen an organizational
Values Statement. Typical items include things like We treat people with respect, We
operate in an ethical fashion, or We achieve zero defects. These are examples of espoused
values, a defined set of values that someone (usually top management) thinks members of the
organization should hold. In some ways, espoused values are like artifacts, easily observable.

In contrast, values in use are the values that are revealed by peoples behavior in the
organization.
2
These might include things like People should be on time, You should never
leave until the boss leaves at night, People shouldnt be reprimanded in public, or The boss
is always right. It is imperative to recognize that values in use dont always match espoused
values and might even be in conflict with them. For example, an organization that formally states
People are our most important resource, but doesnt invest in training or engages in practices
like layoffs or downsizings, might have a conflict between espoused and in-use values.


Subcultures

Much of what we have been addressing concerns the dominant culture of an organization
(if there is one). But organizations can also have subcultures. Subcultures may stem from
departmental or divisional affiliations, from occupational or professional memberships, or from
national or regional differences. Three types of subcultures are possible: enhancing,
complementary, and counterculture.


2
This distinction comes from Ed Schein and is similar to Chris Argyriss notion of theories in use.

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Enhancing

An enhancing subculture holds the same basic assumptions as the dominant culture, but
holds them even more fervently. As an example, Apple computers in the 1980s was stereotyped
as being filled with anti-establishment, rule-breaking innovators (in contrast to other computer
companies such as IBM). The Macintosh division was even more pronounced in its iconoclasm.
This didnt conflict with the dominant culture, but was clearly a subculture.

Complementary
3


A complementary subculture holds the same basic assumptions as the dominant culture,
plus some other nonconflicting assumptions. One example might be the legal department in a
corporation, where the dominant assumptions are held, plus assumptions particular to the legal
profession (e.g., the legal system in the U.S. allows equal representation to all parties). Another
might be the computer help desk, which might hold the same values as the dominant culture, but
also some other values unique to their work (e.g., computer viruses are created and propagated to
sell anti-viral software).

Counterculture

A counterculture holds some assumptions that are in conflict with the assumptions of the
dominant culture. J ohn Deloreans group at General Motors is a classic example of a
counterculture. While GM as a whole was very status conscious and flush with executive perks,
Deloreans group was the antithesis.
4
Countercultures can serve a useful purpose in surfacing
issues that would not be addressed within the dominant culture, but which are necessary for
organizational success or survival.


Managing Culture

There is a great deal of disagreement among practitioners, consultants, and academics
about the degree to which culture can be managed. It is clear that design choices that managers
and leaders make about organizations can affect organizational culture. Top management
philosophy, organizational structure, employee selection, socialization and training, reward
systems, and facilities decisions are just a few things that might influence culture. But it is also
true that attempts to change culture are often very difficult. Many managers see culture as a
surface-level concept and then are unpleasantly surprised when cultural change efforts fail. If we
view culture as a deep concept, we see that culture can be as much constraint as composition. In
that sense, the founder of an organization might be able to influence organizational culture more
than a manager in an established situation.


3
J oanne Martin and Caren Siehl use the term orthogonal instead of complementary.
4
This example comes from the article Organizational Culture and Counterculture: An Uneasy Symbiosis, by
J oanne Martin and Caren Siehl, Organizational Dynamics (Autumn 1983), 5264.

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Tom Peters used to tell the story that after he had given a talk on organizational culture, a
highly energized CEO came up to him and said, Thank you for your talk! I now see the value of
a strong culture. Then, turning to his COO, he barked, I want a culture by Monday! Icebergs
do move, but they move slowly and not always in predictable directions.