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Organizational Culture and Leadership, Fourth Edition

Book Description

Regarded as one of the most influential management books of all time, this fourth edition of Leadership and Organizational Culture transforms the abstract concept of culture into a tool that can be used to better shape the dynamics of organization and change. This updated edition focuses on today's business realities. Edgar Schein draws on a wide range of contemporary research to redefine culture and demonstrate the crucial role leaders play in successfully applying the principles of culture to achieve their organizational goals.

Table of Contents

  1. Copyright
  2. Preface to Fourth Edition
    1. How Is This Book Different from the Second Edition of My 2009 Corporate Culture Survival Guide?
    2. How This Book Is Organized
    3. Acknowledgments
  3. The Author
  4. I. Organizational Culture and Leadership Defined
    1. 1. THE CONCEPT OF ORGANIZATIONAL CULTURE: WHY BOTHER?
      1. 1.1. What Needs to Be Explained?
      2. 1.2. How Does the Concept of Culture Help?
      3. 1.3. Culture: An Empirically Based Abstraction
        1. 1.3.1. Structural Stability
        2. 1.3.2. Depth
        3. 1.3.3. Breadth
        4. 1.3.4. Patterning or Integration
      4. 1.4. Culture Formally Defined
      5. 1.5. Culture Content
        1. 1.5.1. The Process of Socialization or Acculturation
      6. 1.6. Can Culture Be Inferred from Only Behavior?
      7. 1.7. Do Occupations Have Cultures?
      8. 1.8. Summary and Conclusions
    2. 2. THE THREE LEVELS OF CULTURE
      1. 2.1. Artifacts
      2. 2.2. Espoused Beliefs and Values
      3. 2.3. Basic Underlying Assumptions
      4. 2.4. Summary and Conclusions
    3. 3. CULTURES IN ORGANIZATIONS: TWO CASE EXAMPLES
      1. 3.1. The Digital Equipment Corp.
        1. 3.1.1. Artifacts: Encountering the Company
        2. 3.1.2. Espoused Beliefs and Values
        3. 3.1.3. Basic Assumptions: The DEC Paradigm
      2. 3.2. Ciba-Geigy
        1. 3.2.1. Artifacts—Encountering Ciba-Geigy
        2. 3.2.2. Espoused Beliefs and Values
        3. 3.2.3. Basic Assumptions—The Ciba-Geigy Company Paradigm
      3. 3.3. Summary and Conclusions
    4. 4. MACROCULTURES, SUBCULTURES, AND MICROCULTURES
      1. 4.1. Three Generic Subcultures
        1. 4.1.1. The Operator Subculture
        2. 4.1.2. The Engineering/Design Subculture
        3. 4.1.3. The Executive Subculture
      2. 4.2. Microcultures
      3. 4.3. Summary and Conclusions
  5. II. The Dimensions of Culture
    1. 5. ASSUMPTIONS ABOUT EXTERNAL ADAPTATION ISSUES
      1. 5.1. Shared Assumptions About Mission, Strategy, and Goals
      2. 5.2. Shared Assumptions About Goals Derived from the Mission
      3. 5.3. Shared Assumptions About Means to Achieve Goals: Structure, Systems, and Processes
      4. 5.4. Shared Assumptions About Measuring Results and Correction Mechanisms
        1. 5.4.1. What to Measure
        2. 5.4.2. Consensus on Means of Measurement
      5. 5.5. Shared Assumptions About Remedial and Repair Strategies
      6. 5.6. Summary and Conclusions
    2. 6. ASSUMPTIONS ABOUT MANAGING INTERNAL INTEGRATION
      1. 6.1. Creating a Common Language and Conceptual Categories
      2. 6.2. Defining Group Boundaries and Identity
      3. 6.3. Distributing Power, Authority, and Status
      4. 6.4. Developing Rules for Relationships
      5. 6.5. Allocating Rewards and Punishment
      6. 6.6. Managing the Unmanageable and Explaining the Unexplainable
      7. 6.7. Summary and Conclusions
    3. 7. DEEPER CULTURAL ASSUMPTIONS: WHAT IS REALITY AND TRUTH?
      1. 7.1. Shared Assumptions About the Nature of Reality and Truth
        1. 7.1.1. Levels of Reality
      2. 7.2. High Context and Low Context
      3. 7.3. Moralism-Pragmatism
      4. 7.4. What Is "Information"?
      5. 7.5. Summary and Conclusions
    4. 8. DEEPER CULTURAL ASSUMPTIONS: THE NATURE OF TIME AND SPACE
      1. 8.1. Assumptions About Time
        1. 8.1.1. Basic Time Orientation
        2. 8.1.2. Monochronic and Polychronic Time
        3. 8.1.3. Subculture Variations: Planning Time and Development Time
        4. 8.1.4. Discretionary Time Horizons and Degree of Accuracy
        5. 8.1.5. Temporal Symmetry, Pacing, and Entrainment
        6. 8.1.6. Summary
      2. 8.2. Assumptions About the Nature of Space
      3. 8.3. Distance and Relative Placement
        1. 8.3.1. The Symbolism of Space
        2. 8.3.2. Body Language
        3. 8.3.3. Time, Space, and Activity Interaction
      4. 8.4. Summary and Conclusions
    5. 9. DEEPER CULTURAL ASSUMPTIONS: HUMAN NATURE, ACTIVITY, AND RELATIONSHIPS
      1. 9.1. Assumptions About Human Nature
      2. 9.2. Assumptions About Appropriate Human Activity
        1. 9.2.1. The Doing Orientation
        2. 9.2.2. The Being Orientation
        3. 9.2.3. The Being-in-Becoming Orientation
      3. 9.3. Assumptions About the Nature of Human Relationships
        1. 9.3.1. Individualism and Collectivism
        2. 9.3.2. Power Distance
        3. 9.3.3. Basic Characteristics of Role Relationships
        4. 9.3.4. Rules of Interaction—The Joint Effect of Time, Space, and Relationship Assumptions
      4. 9.4. Summary and Conclusions
    6. 10. CULTURE TYPOLOGIES AND CULTURE SURVEYS
      1. 10.1. Why Typologies and Why Not?
        1. 10.1.1. Problems in the Use of Surveys
        2. 10.1.2. When to Use Surveys
      2. 10.2. Typologies That Focus on Assumptions About Authority and Intimacy
      3. 10.3. Typologies of Corporate Character and Culture
        1. 10.3.1. Examples of Survey-Based Profiles of Cultures
      4. 10.4. Examples of Using A Priori Criteria for Culture Evaluation
      5. 10.5. Summary and Conclusions
    7. 11. DECIPHERING ORGANIZATIONAL CULTURES
      1. 11.1. Why Decipher Culture?
        1. 11.1.1. Deciphering from the Outside
        2. 11.1.2. Deciphering in a Researcher Role
          1. 11.1.2.1. Clinical Research: Deciphering in a Consultant/Helper Role.
          2. 11.1.2.2. How Valid Are Clinically Gathered Data?
      2. 11.2. Ethical Issues in Deciphering Culture
        1. 11.2.1. Risks of an Analysis for Research Purposes
        2. 11.2.2. Risks of an Internal Analysis
        3. 11.2.3. Professional Obligations of the Culture Analyst
      3. 11.3. Summary and Conclusions
  6. III. The Leadership Role in Building, Embedding, and Evolving Culture
    1. 12. HOW CULTURE EMERGES IN NEW GROUPS
      1. 12.1. Group Formation Through Originating and Marker Events
        1. 12.1.1. How Individual Intentions Become Group Consequences
        2. 12.1.2. Building Meaning Through Sharing Perceptions and Articulating Feeling
        3. 12.1.3. Leadership as Timely Intervention
      2. 12.2. Stage 1: Dealing with Assumptions About Authority
        1. 12.2.1. Building New Norms Around Authority
        2. 12.2.2. Reality Test and Catharsis
      3. 12.3. Stage 2: Building Norms Around Intimacy
        1. 12.3.1. Reality Test and Catharsis
        2. 12.3.2. Which Norms Survive? The Role of Experience and Learning
      4. 12.4. Stage 3: Group Work and Functional Familiarity
      5. 12.5. Stage 4: Group Maturity
      6. 12.6. Summary and Conclusions
    2. 13. HOW FOUNDERS/LEADERS CREATE ORGANIZATIONAL CULTURES
      1. 13.1. Culture Beginnings Through Founder/Leader Actions
        1. 13.1.1. Sam Steinberg
        2. 13.1.2. Fred Smithfield Enterprises
        3. 13.1.3. Ken Olsen/DEC
        4. 13.1.4. Wozniak and Jobs in Apple, Watson in IBM, and Packard and Hewlett in HP
      2. 13.2. Summary and Conclusions
    3. 14. HOW LEADERS EMBED AND TRANSMIT CULTURE
      1. 14.1. How Leaders Embed Their Beliefs, Values, and Assumptions
        1. 14.1.1. Primary Embedding Mechanisms
          1. 14.1.1.1. What Leaders Pay Attention To, Measure, and Control.
            1. 14.1.1.1.1. Emotional Outbursts.
            2. 14.1.1.1.2. Inferences from What Leaders Do Not Pay Attention To.
            3. 14.1.1.1.3. Inconsistency and Conflict.
          2. 14.1.1.2. Leader Reactions to Critical Incidents and Organizational Crises.
          3. 14.1.1.3. How Leaders Allocate Resources.
          4. 14.1.1.4. Deliberate Role Modeling, Teaching, and Coaching.
          5. 14.1.1.5. How Leaders Allocate Rewards and Status.
          6. 14.1.1.6. How Leaders Select, Promote, and Excommunicate.
        2. 14.1.2. Primary Embedding Mechanisms: Some Concluding Observations
      2. 14.2. Secondary Articulation and Reinforcement Mechanisms
        1. 14.2.1. Organizational Design and Structure
        2. 14.2.2. Organizational Systems and Procedures
        3. 14.2.3. Rites and Rituals of the Organization
        4. 14.2.4. Design of Physical Space, Facades, and Buildings
        5. 14.2.5. Stories About Important Events and People
        6. 14.2.6. Formal Statements of Philosophy, Creeds, and Charters
      3. 14.3. Summary and Conclusions
    4. 15. THE CHANGING ROLE OF LEADERSHIP IN ORGANIZATIONAL "MIDLIFE"
      1. 15.1. Differentiation and the Growth of Subcultures
        1. 15.1.1. Functional/Occupational Differentiation
        2. 15.1.2. Geographical Differentiation
        3. 15.1.3. Differentiation by Product, Market, or Technology
        4. 15.1.4. Divisionalization
        5. 15.1.5. Differentiation by Hierarchical Level
      2. 15.2. Summary and Conclusions
    5. 16. WHAT LEADERS NEED TO KNOW ABOUT HOW CULTURE CHANGES
      1. 16.1. Founding and Early Growth
        1. 16.1.1. Incremental Change Through General and Specific Evolution
          1. 16.1.1.1. General Evolution.
          2. 16.1.1.2. Specific Evolution.
        2. 16.1.2. Self-Guided Evolution Through Insight
        3. 16.1.3. Managed Evolution Through Hybrids
      2. 16.2. Transition to Midlife: Problems of Succession
        1. 16.2.1. Culture Change Through Systematic Promotion from Selected Subcultures
        2. 16.2.2. Culture Change Through Technological Seduction
        3. 16.2.3. Culture Change Through Infusion of Outsiders
      3. 16.3. Organizational Maturity and Potential Decline
        1. 16.3.1. Culture Change Through Scandal and Explosion of Myths
        2. 16.3.2. Culture Change Through Turnarounds
        3. 16.3.3. Culture Change Through Mergers and Acquisitions
        4. 16.3.4. Culture Change Through Destruction and Rebirth
      4. 16.4. Summary and Conclusions
  7. IV. How Leaders Can Manage Culture Change
    1. 17. A CONCEPTUAL MODEL FOR MANAGED CULTURE CHANGE
      1. 17.1. The Psycho-Social Dynamics of Organizational Change
      2. 17.2. Unfreezing/Disconfirmation
      3. 17.3. Survival Anxiety Versus Learning Anxiety
      4. 17.4. How to Create Psychological Safety
      5. 17.5. Cognitive Restructuring
        1. 17.5.1. Learning New Concepts and New Meanings for Old Concepts
        2. 17.5.2. Imitation and Identification Versus Scanning and Trial-and-Error Learning
      6. 17.6. Refreezing
      7. 17.7. Principles in Regard to Culture Change
      8. 17.8. Summary and Conclusions
    2. 18. CULTURE ASSESSMENT AS PART OF MANAGED ORGANIZATIONAL CHANGE
      1. 18.1. Rapid Deciphering—A Multistep Group Process
        1. 18.1.1. Step One: Obtaining Leadership Commitment
        2. 18.1.2. Step Two: Selecting Groups for Self-Assessment
        3. 18.1.3. Step Three: Selecting an Appropriate Setting for the Group Self-Assessment
        4. 18.1.4. Step Four: Explaining the Purpose of the Group Meeting (15 mins.)
        5. 18.1.5. Step Five: A Short Lecture on How to Think About Culture (15 mins.)
        6. 18.1.6. Step Six: Eliciting Descriptions of the Artifacts (60 mins.)
        7. 18.1.7. Step Seven: Identifying Espoused Values (15–30 mins.)
        8. 18.1.8. Step Eight: Identifying Shared Underlying Assumptions (15–30 mins.)
        9. 18.1.9. Step Nine: Identifying Cultural Aids and Hindrances (30–60 mins.)
        10. 18.1.10. Step Ten: Decisions on Next Steps (30 mins.)
      2. 18.2. What If Culture Elements Need to Change?
      3. 18.3. Summary and Conclusions
    3. 19. ILLUSTRATIONS OF ORGANIZATIONAL CULTURE CHANGES
      1. 19.1. Illustration 1. Beta Service Company—Rapid Change Through Behavior Modification
        1. 19.1.1. Lessons Learned
      2. 19.2. Illustration 2. MA-COM—Revising a Change Agenda as a Result of Cultural Insight
        1. 19.2.1. Lessons Learned
      3. 19.3. Illustration 3. U.S. Army Corps of Engineers—Reassessing Mission
        1. 19.3.1. Lessons Learned
      4. 19.4. Illustration 4. Apple Computer—Culture Assessment as Part of a Long-Range Planning Process
        1. 19.4.1. Lessons Learned
      5. 19.5. Illustration 5: Ciba-Geigy—Did the Culture Change?
        1. 19.5.1. Initial Contact and First Annual Meeting
          1. 19.5.1.1. Impact of First Annual Meeting.
          2. 19.5.1.2. First Year's Work: Getting Acquainted with the Culture.
          3. 19.5.1.3. Unfreezing at the Second Annual Meeting.
          4. 19.5.1.4. Inducing Survival Anxiety.
          5. 19.5.1.5. Providing Some Psychological Safety.
          6. 19.5.1.6. Creating a Structure for the Redirection Project: Project Task Forces as a "Parallel System"
        2. 19.5.2. Second Year: Consolidation of the Redirection Project
          1. 19.5.2.1. Third Annual Meeting: The Culture Lecture Disaster.
          2. 19.5.2.2. Assessment During the Third Year.
      6. 19.6. Summary and Conclusions
  8. V. New Roles for Leaders and Leadership
    1. 20. THE LEARNING CULTURE AND THE LEARNING LEADER
      1. 20.1. What Might a Learning Culture Look Like?
        1. 20.1.1. 1. Proactivity
        2. 20.1.2. 2. Commitment to Learning to Learn
        3. 20.1.3. 3. Positive Assumptions About Human Nature (Theory Y)
        4. 20.1.4. 4. Belief That the Environment Can Be Managed
        5. 20.1.5. 5. Commitment to Truth Through Pragmatism and Inquiry
        6. 20.1.6. 6. Positive Orientation Toward the Future
        7. 20.1.7. 7. Commitment to Full and Open Task-Relevant Communication
        8. 20.1.8. 8. Commitment to Cultural Diversity
        9. 20.1.9. 9. Commitment to Systemic Thinking
        10. 20.1.10. 10. Belief That Cultural Analysis Is a Valid Set of Lenses for Understanding and Improving the World
      2. 20.2. Why These Dimensions?
      3. 20.3. Learning-Oriented Leadership
        1. 20.3.1. Learning Leadership in Culture Creation
        2. 20.3.2. Leadership in Organizational Midlife
        3. 20.3.3. Leadership in Mature and Declining Organizations
        4. 20.3.4. Leadership and Culture in Mergers and Acquisitions
        5. 20.3.5. Leadership and Culture in Partnerships, Joint Ventures, and Strategic Alliances
      4. 20.4. Implications for the Selection and Development of Leaders
        1. 20.4.1. 1. Perception and Insight
        2. 20.4.2. 2. Motivation
        3. 20.4.3. 3. Emotional Strength
        4. 20.4.4. 4. Ability to Change the Cultural Assumptions
        5. 20.4.5. 5. Ability to Create Involvement and Participation
      5. 20.5. Summary and Conclusions
    2. 21. CULTURAL ISLANDS: MANAGING MULTICULTURAL GROUPS
      1. 21.1. Cultural Intelligence
      2. 21.2. The Concept of a Temporary Cultural Island
        1. 21.2.1. Focused Dialogue as a Cultural Island
      3. 21.3. Dialogue as a Cultural Island for Multicultural Exploration
        1. 21.3.1. How to Set Up a Dialogue
        2. 21.3.2. When and Why to Use Dialogue and Other Forms of Cultural Islands
      4. 21.4. Summary and Conclusions
      5. 21.5. A Final Word
  9. REFERENCES