Various business management theorists have introduced models of the types of corporate culture because there is no one common theory of the different models of organizational culture. It is mainly because businesses are very different in the ways that they operate.
Edgar Henry Schein proposed a theoretical model of corporate culture that outlines three distinct levels where the shared basic assumptions (invisible part of culture) shape espoused values and the values shape artefacts which are practices and behavior (visible part of culture).
Dimensions of corporate culture by Edgar Henry Shein
Every business organization has its own mix of the following dimensions of corporate culture including:
1. Artefacts. These organizational attributes of a business organization include practices and behavioral aspects of the business. They are a visible part of corporate culture as they can be easily seen but are not necessarily easy to understand. The visible part of the culture can be seen by outside visitors as it marks the surface of the organizational culture mainly through:
a. Physical artefacts. These can be found through buildings, architecture, interior decorations, physical space and its allocation, office design, facilities, decoration, dress code, mementos and trophies awarded, etc.
b. Language. This can be found through modes of speaking, levels and types of sound, formality of the language, slogans, how people talk to each other, special expressions, etc.
c. Stories and myths These can be found among the staff to indicate what type of persons or acts are considered worth following, how certain types of situations should be handled, what should not be done, what happens in this organization if one acts in a particular way, etc.
2. Espoused values. These organizational attributes of a business organization include the values that the organization feels are important and employees are committed to. They represent the desired or expected corporate culture, or ‘how things should be’. Espoused values are expressed among staff mainly through vision statement and mission statement, metaphors, symbols, brands, slogans, letterheads, etc.
3. Shared basic assumptions. These organizational attributes of a business organization include the actual values demonstrated through behavior. They are an invisible part of corporate culture as they can be easily understood but are not necessarily easy to see. These represent the deepest level of culture which is so well integrated in the organization that it drives the entire firm. The invisible part of culture that cannot be seen by outside visitors marks the what cannot be easily identified mainly including subcultures, behavior, ‘how things really get done’ here as opposed to ‘official’ channels, etc.
Types of corporate culture by Edgar Henry Shein
Based on different mix of dimensions, the following types of organizational culture can emerge:
- Group culture. This culture is focused on collaboration, teamwork, and group decision-making. Employees are expected to be loyal to the team and the company.
- Innovation culture. This culture values creativity, risk-taking, and new ideas. Employees are encouraged to experiment and challenge the status quo.
- Bureaucratic culture. This culture emphasizes rules, procedures, and hierarchy. Employees are expected to follow the rules and respect authority.
- Power culture. This culture is focused on competition, achievement, and individual success. Employees are expected to be aggressive and results-oriented.
- Market culture. This culture is driven by customer satisfaction and profitability. Employees are expected to be responsive to customer needs and focused on the bottom line.
- Safety culture. This culture prioritizes safety and risk management. Employees are expected to follow safety procedures and report hazards.
- Adaptability culture. This culture values flexibility, change, and continuous learning. Employees are expected to be adaptable and willing to learn new things.
It is important to note that these are three levels of corporate culture, and in reality, most companies will have a culture that is a mix of these levels. The best type of corporate culture for a company will depend on a variety of factors, such as the company’s industry, size, and stage of development.
