What Is Organizational Culture?

A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation 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.

From: Organizational Culture & Leadership, Edgar Schein

Culture is the result of a very complex group learning process and it refers to those elements of a group or organization that are the most stable and least changeable.

Aspects of Organizational Culture:

If a company's employees are to accomplish tasks that allow it to adapt to its external environment, the Company must be able to support and maintain relationships among its members. The major variables of culture that leaders must understand include:

1. The way the group thinks and speaks about things.
2. The definitions of group boundaries and criteria for inclusion and exclusion.
3. The distribution of power and status.
4. Norms relating to relationships.
5. Definitions and allocations of rewards and punishments.
6. Explanations of what has happened and is happening i.e. the stories.

Why is culture important to business leaders?

If a company's survival is threatened because elements of its culture don't support change, it is ultimately the function of leadership to recognize and do something about the situation. It is in this sense that leadership and culture are intertwined.

Organizational cultures are created in part by leaders, and one of the most critical functions of leadership is the creation, the management and sometimes even the destruction of culture.

An organization's culture will either support or inhibit change efforts. A cultural audit or survey is a technique for understanding how to address important organizational issues. We are experts in auditing, understanding and explaining organizational culture to business leaders. More importantly, we provide advice on changing cultures to business leaders.

Contact us to discuss how cultural audits and surveys can help you build your organization.