‭What is culture?

‬
‭ ulture is a powerful leadership tool that uses unwritten rules to‬
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‭influence behaviour and performance. This video will introduce you to‬
‭the concept of culture, relate culture to leadership and expand on the‬
‭definition of culture by explaining the multilayered nature of this‬
‭concept.‬

‭Culture and underlying assumptions‬

‭ hink of an unwritten rule in your culture – something that everyone‬
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‭knows you ‘should’ or ‘should not’ do. An unwritten rule is something‬
‭that is so widely accepted that nobody needs to say it out loud, except‬
‭perhaps when teaching young children. For example, “You should not‬
‭call your teachers by their first name”, “You should say ‘sorry’ when‬
‭you accidentally bump into someone”, “You should not walk into‬
‭someone’s home without permission”.‬

‭ nce you have chosen that unwritten rule, ask yourself “Why?”. Keep‬
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‭on asking yourself why with each subsequent answer you give, until‬
‭you discover the real reason behind your actions – the underlying‬
‭assumption that explains this part of your culture.‬

‭ nce you’ve done this thought exercise, share your thoughts with your‬
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‭classmates. Consider discussing how underlying assumptions can‬
‭differ across different cultures. Also consider some of the challenges‬
‭posed by differing underlying assumptions.‬

‭ 0.3 Notes: The impact of a strong culture‬

1
‭and subcultures on an organisation‬
‭1. Introduction‬
I‭n Module 1, references were made to the way culture can affect‬
‭power relationships. It was explained that culture can affect who is‬
‭seen as having legitimate power, as well as which kinds of non-verbal‬
‭signs are linked to power. In the video component of Module 10 Unit 1,‬
‭you were introduced to the concept of culture in more detail. You‬
‭learnt that culture is a set of social norms that govern the behaviour‬
‭and attitudes of members of a group, and that older members of a‬
‭group pass culture on to younger members. Even more precisely,‬
‭culture can be defined as “a pattern of shared basic assumptions‬
‭learned by a group as it solved its problems of external adaptation and‬
‭internal integration, which 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,‬
‭2010:18).‬

‭ ne of the reasons culture is passed on, then, is because it has been‬

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‭found to be useful. These notes explore how the strength of an‬
‭organisation’s culture can increase or decrease, and the advantages‬
‭and disadvantages of having a strong culture. Special focus will then‬
‭be placed on the influence of subcultures. Subcultures can affect the‬
‭strength and nature of the overall organisational culture, and can help‬
‭or hinder the organisation’s performance.‬

‭2. A strong culture‬

‭ strong culture can be defined as a “high degree of consistency‬
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‭among organizational members in terms of their shared belief‬
‭structures, values, and norms” (Ashkanasy & Jackson, 2001:400). One‬
‭can assess strength not only on whether the beliefs are widely and‬
‭consistently held throughout the organisation, but also on whether‬
‭they are intensely held (Sørenson, 2002:72). Whether a culture has‬
‭developed to this degree can depend on several factors:‬
 ‭ ength of time the group has existed: The longer the shared‬
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‭history of a group’s members, the more likely they are to have a‬
‭strong culture. An organisation might not have an overall culture‬
‭due to not having existed for very long, or due to its members‬
‭frequently changing.‬
‭Intensity of the group learning experience: The culture of a‬
‭combat unit, for example, might be particularly strong because‬
‭of the intensity of their shared experiences. The same principle‬
‭applies to other groups; if the shared experiences are intense,‬
‭then the culture might be particularly strong. An organisation’s‬
‭employees might have made it through a particularly tough year,‬
‭for example, and the adaptations they needed to survive might‬
‭have become integral to the organisation’s culture.‬
‭Mechanisms by which learning occurs: Different ways of‬
‭imparting knowledge might create a greater or lesser impression‬
‭on a student or employee, affecting whether they remember and‬
‭implement the knowledge or not. For example, receiving‬
‭on-the-job mentoring can be more powerful than formal training‬
‭(Schein 2010:56).‬
‭Strength and clarity of the beliefs of the group’s founders and‬
‭leaders: The clarity of the beliefs of the group’s leaders, and the‬
‭strength with which they hold them, can affect the extent to‬
‭which these beliefs get diffused among the group members.‬

‭(Schein, 1990)‬

‭2.1 Advantages of a strong organisational culture‬

‭ n organisational culture that is strong in the sense described in the‬
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‭previous section can be construed as an asset. It has been linked to‬
‭“job satisfaction, commitment, job proficiency, and long tenure of‬
‭employees” (Ashkanasy & Jackson, 2001:400).‬
‭ ob proficiency can be enhanced due to the clarity surrounding the‬
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‭organisation’s goals and practices, less uncertainty about the proper‬
‭course of action, and less debate about what is in the firm’s best‬
‭interests (Sørenson, 2002). Increased commitment, motivation, and‬
‭performance are also likely if employees feel that their actions are‬
‭freely chosen (Sørenson, 2002). In other words, employees may‬
‭personally take on the values and norms of the organisation’s culture,‬
‭and so when they act in accordance with those values and norms, it‬
‭feels like freely chosen action.‬

‭ strong culture can also help to differentiate organisations from their‬

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‭competitors, and it creates stability within the organisation (Schein,‬
‭2010).‬

‭ o summarise, a strong organisational culture has the following‬

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‭advantages:‬

‭ igh job satisfaction‬

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‭Increased employee commitment and motivation‬
‭Job proficiency‬
‭Long tenure at the organisation‬
‭Differentiation from competitors‬
‭Stability‬

‭2.2 Disadvantages of a strong organisational culture‬

‭ rganisations with strong cultures are good at responding to‬
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‭incremental changes in their environment. Incremental changes allow‬
‭these companies to adapt their well-established competencies and‬
‭procedures to meet the small changes in their environment, without‬
‭having to alter any of their fundamental assumptions or beliefs.‬
‭Problems can emerge, however, when strong-culture organisations‬
‭have to respond to fundamental or discontinuous changes in their‬
‭ nvironment (Sørenson, 2002). To successfully adapt to drastic‬
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‭changes, organisations have to discover alternative ways of doing‬
‭things and develop alternative mission statements. In other words,‬
‭they need to engage in “exploratory learning” where they seek out‬
‭alternative ways of doing things. However, strong-culture‬
‭organisations might not be good at exploratory learning, for the‬
‭following reasons:‬

‭ reater difficulty recognising the need for change: Strong-culture‬

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‭organisations are defined by members who share common‬
‭beliefs. Sometimes members hold these beliefs intensely, which‬
‭means that they have a particular understanding of the world‬
‭and their organisation’s role. This could make them slower in‬
‭detecting and accepting radical changes in the environment.‬
‭Less access to individuals with alternative points of view: One‬
‭source of exploratory learning is individuals who hold beliefs that‬
‭are different from the organisation’s beliefs. But strong-culture‬
‭organisations might have fewer individuals of this sort, and they‬
‭might be less willing to foster these individuals’ beliefs or accept‬
‭their point of view.‬
‭Less likely to foster subcultures: Subgroups within an‬
‭organisation might start to develop alternative beliefs, which can‬
‭be a good source of exploratory learning. However, subcultures‬
‭might be less likely to develop and persist in strong-culture‬
‭organisations, as they might not encourage or accept alternative‬
‭beliefs.‬

‭(Sørenson, 2002)‬
‭ s Karl Weick (1985, quoted by Sørenson, 2002:77) puts it, “[a]‬
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‭coherent statement of who we are makes it harder for us to become‬
‭something else”.‬

‭ esides the difficulty with adapting to change, a strong organisational‬

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‭culture can also make mergers more difficult, as mergers might‬
‭require the joining of different cultures (Chatterjee et al., 1992). Also,‬
‭an organisation might attract and retain similar types of employees,‬
‭leading to less access to alternative and potentially enlightening‬
‭points of view (Bradley-Geist & Landis, 2012). Finally, it could lead to‬
‭undesirable behaviour, such as people hiding unethical behaviour out‬
‭of a sense of loyalty.‬

‭ herefore, a strong organisational culture has the following‬

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‭disadvantages:‬

‭ an make adapting to radical changes in the environment‬

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‭difficult‬
‭Can make mergers more difficult‬
‭Can attract and retain only similar types of people‬
‭Can unintentionally lead to undesirable behaviour‬

‭3. Subcultures‬
I‭n the video component of Unit 1, you learnt that culture has three‬
‭different levels, namely observable artefacts, values and norms, and‬
‭underlying assumptions. Besides these levels, cultures can also be‬
‭viewed hierarchically in terms of their size. Edgar Schein (2010) has‬
‭identified the following culture categories in an organisational context,‬
‭from largest to smallest:‬
 ‭ acroculture: The culture of nations, ethnic groups, religious‬
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‭groups, and occupations that exist globally (e.g. medicine,‬
‭academia, engineering).‬
‭Organisational culture: The culture of private, public, non-profit,‬
‭and governmental organisations.‬
‭Subculture: The culture of occupational groups within‬
‭organisations (e.g. accounting, engineering, and human‬
‭resources). Some of the people who belong to a subculture will‬
‭also belong to a macroculture. For example, the group of‬
‭engineers who form a subculture within an organisation will also‬
‭belong to the macroculture of engineering that is formed by‬
‭shared educational experiences and knowledge bases.‬
‭Microculture: Microsystems within or outside organisations that‬
‭cut across occupational groups, such as surgical teams or task‬
‭forces. The fact that these groups can cut across occupational‬
‭groupings helps distinguish them from subcultures.‬

‭ ecall:‬
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‭In Module 1, it was explained that culture can help determine which‬
‭people are seen as having legitimate power. It was also noted that‬
‭culture can help determine which kinds of non-verbal signs are‬
‭associated with power. The kind of culture determining these matters‬
‭is usually a macroculture – the culture of nations and ethnic groups.‬
‭But it is possible for organisational culture to affect this too. For‬
‭example, it might become the custom in an organisation that senior‬
‭managers always sit at the head of a conference table. Sitting in that‬
‭position will then become associated with power and seniority.‬
‭Any organisation that has had sufficient time to grow will develop‬
‭subcultures. This occurs as the organisation divides labour or work‬
‭functions, or creates other units or geographical divisions (Schein,‬
‭1990). Members of subcultures might share some of the beliefs that‬
f‭ orm the overall organisational culture, but they will also have their‬
‭own beliefs and values, based on their unique roles or experiences‬
‭(Schein, 2010).‬

‭ ubcultures interact with the overall organisational culture. The‬

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‭organisation will then evolve by attempting to make the organisational‬
‭culture dominant or by allowing subcultures to change the‬
‭organisational culture (Schein, 1990).‬

‭ ubcultures can either hinder an organisation or aid it, as discussed in‬

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‭the following subsections.‬

‭ ote:‬
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‭The following discussion is not about the existence of units or‬

‭ 0.3 Notes: The impact‬

1
‭departments as such, bu‬

‭of a strong culture and subcultures on‬

‭an organisation‬
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‭3.3 Three generic types of subculture‬

‭ dgar Schein has found that most organisations have the following‬
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‭three types of subcultures: the operators, the engineers or designers,‬
‭and the executives. Identifying these subcultures, their beliefs, and the‬
‭differences between them, can help managers deal with conflict that‬
‭ an exist amongst them. The conflict can be misunderstood as being‬
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‭about internal politics, grabs for power, or conflicts of personality,‬
‭while the real source of the conflict might instead be the different‬
‭assumptions and values of each group, which can be managed and‬
‭brought into alignment once they are recognised (Schein, 1996;‬
‭Schein, 2010).‬

‭3.3.1 The operators‬

‭ he operators are the workers and line managers that are on the front‬
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‭line of the organisation, producing or selling the organisation’s‬
‭products or services. This subculture is based on human interaction‬
‭and members rely on communication, trust, and teamwork to get work‬
‭done efficiently. As they are on the front line, they realise that‬
‭unexpected events occur and that they might need to deviate from‬
‭formal rules or procedures to get work done. Thus, they are a source‬
‭of innovation and learning.‬

‭The operator subculture tends to have the following assumptions:‬

‭ he operators are the organisation’s critical resource.‬

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‭The success of the organisation depends on their skill,‬
‭knowledge, ability, and motivation.‬
‭The knowledge and skills are “local”; they are a combination of‬
‭core technology and the particular knowledge and experience of‬
‭the organisation’s employees.‬
‭Even the most carefully planned rules or processes will need to‬
‭be adapted to meet the conditions of the real world.‬
‭The workforce can adapt to changing circumstances and create‬
‭innovative solutions.‬
‭Teams need to work together and trust each other.‬
 ‭ anagement must provide resources, support, and training in‬
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‭order for the workforce to get its job done.‬

‭(Schein, 2010)‬

‭3.3.2 The engineers or designers‬

‭ he terms engineers and designers are used broadly here to mean the‬
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‭people who are designing new technologies, processes, and services‬
‭for the organisation, rather than doing the regular daily work that the‬
‭operators do. So, it might be an actual engineer designing a new piece‬
‭of technology or a financial analyst developing a new financial service.‬
‭This subculture tends to value systems and abstract solutions,‬
‭preferring to design away the unpredictable human element, if‬
‭possible. These assumptions often come from an occupational‬
‭macroculture (for example, engineering or computer science) and‬
‭shared educational experiences. If the company was founded by‬
‭highly technical people, this subculture can dominate the others.‬

‭ he engineering or design subculture tends to have the following‬

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‭assumptions:‬

‭ he ideal solution is to have machines and processes working‬

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‭without human intervention and human errors.‬
‭Solutions to problems should be based on science and‬
‭technology.‬
‭Work should be oriented towards solving puzzles and‬
‭overcoming problems.‬
‭Work should produce useful products and outcomes.‬

‭(Schein, 2010)‬

‭3.3.3 The executives‬

‭ he executive subculture comprises the top layer of management. As‬
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‭managers reach the top level of the managerial hierarchy, they tend to‬
‭focus more on the financial well-being of the company. A focus on‬
‭financial well-being is essential to the success of the organisation, and‬
‭the executives also need to answer to investors, markets, and board‬
‭members. However, as their focus shifts to financial matters, there is‬
‭the potential for them to view people as resources and costs rather‬
‭than individual human beings.‬

‭ xecutives also tend to become removed from the rest of the‬

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‭workforce. As they move to the top of the managerial hierarchy, the‬
‭people reporting to them tend to be other managers who are lower‬
‭down on the hierarchy, but who might still have similar concerns and‬
‭worldviews. Moreover, as they ultimately become responsible for a‬
‭greater number of units and people, it becomes impossible to know‬
‭everyone personally. The increasing distance from the workforce‬
‭results in an emphasis on rules and processes that can govern the‬
‭behaviour of subordinates. Executives are also influenced by global‬
‭business culture (the macroculture of executives).‬

‭The executive subculture tends to have the following assumptions:‬

‭ inancial survival and growth is essential if the organisation is to‬

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‭provide value to shareholders and society.‬
‭The organisation is at constant war with competitors.‬
‭You probably cannot get reliable information from subordinates,‬
‭because they “will tell you what they think you want to hear”, and,‬
‭therefore, the CEO must primarily trust his or her own judgement.‬
‭People are a resource like other resources.‬
‭Hierarchical control is essential to proper management.‬
 ‭(Schein, 2010)‬

‭3.3.4 Summary‬
‭ he operator, engineer or designer, and executive subcultures are all‬
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‭essential to the proper functioning of an organisation, yet their‬
‭different assumptions can lead to misunderstanding and conflict. One‬
‭of the important functions of leadership is ensuring that these‬
‭subcultures align on organisational goals (Schein, 2010).‬

t‭ rather about the unique cultures that develop in these units that are‬
‭different from the overall organisational culture. In other words, the‬
‭focus is on subcultures, rather than subdivisions.‬
‭3.1 Potential advantage of subcultures‬
‭ ou saw in Section 2.2 that one of the disadvantages of a strong‬
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‭organisational culture is that it can make it difficult to respond to‬
‭radical changes in the external environment. The advantage of having‬
‭subcultures is that subcultures can be a source of exploratory learning‬
‭for the organisation. Subcultures can have beliefs, technologies, or‬
‭processes that might aid the organisation in adapting to the changes‬
‭in its environment (Schein, 2010).‬

‭3.2 Potential disadvantage of subcultures‬

‭ rganisations tend to develop shared cultural assumptions about‬
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‭various important business processes, such as the organisation’s‬
‭“ultimate mission, goals, means used to achieve goals, measurement‬
‭of its performance, and remedial strategies” (Schein, 2010:91). If the‬
‭organisation’s various units have not reached consensus on these‬
‭matters, this internal conflict can hinder the organisation’s‬
‭performance (Schein, 2010).‬
‭ he next section identifies three types of subcultures that are found in‬
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‭most organisations, and looks at ways to reduce conflict between‬
‭them.‬

‭ 0.3 Notes: The impact of a strong culture‬

1
‭and subcultures on an organisation‬
‭4. Conclusion‬
‭ ou have seen that having a strong organisational culture can be both‬
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‭an asset and a liability. It can increase job satisfaction, commitment‬
‭and motivation, job proficiency, long tenures, differentiation from‬
‭competitors, and stability. Yet a strong organisational culture can also‬
‭make mergers and adapting to radical changes in the environment‬
‭more difficult, result in the attraction and retention of similar types of‬
‭people, and unintentionally lead to undesirable behaviour.‬

‭ s organisations grow, they also develop subcultures. Subcultures can‬

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‭help organisations adapt to fundamental changes in the external‬
‭environment, as they have assumptions and processes that differ‬
‭from the organisational culture that might be better suited to the new‬
‭environment. However, subcultures can also hinder the organisation’s‬
‭performance by causing internal conflict and misalignment on core‬
‭processes and goals. One of the tasks of leadership is managing‬
‭subcultures. It is helpful, therefore, to be aware of three generic‬
‭subcultures that companies tend to have, namely operators, engineers‬
‭or designers, and executives. Understanding the assumptions that‬
‭these subcultures tend to have can help prevent misalignment on the‬
‭organisation’s goals.‬