What is Organizational Culture?

The concept of culture has been central to anthropology and folklore studies for over a century. However, a significant body of literature on workplace customs and traditions emerged between the 1940s and 1950s (e.g., Chapple, Dalton, Messenger, Roy & Whyte).

It wasn’t until the early 1970s that organizational culture became a recognized concept in management studies. By the 1980s, scholars widely adopted the idea, with notable contributions from Pascale & Athos (1981), Deal & Kennedy (1982), Ouchi (1981), Kilmann et al. (1985), Peters & Waterman (1982), and Sathe (1985).

Defining Organizational Culture

Schein (1987) defined organizational culture as a shared paradigm developed by a group to establish norms for current and new employees, shaping how they perceive, think, and respond to challenges.

Other key perspectives include:

• Lord & Maher (1991) – Culture is formed through shared values, beliefs, and judgments.

• Deal & Kennedy (1982) – It is the practices and behaviors shaped by words, relationships, and gestures within an organization.

  
  

Schein’s Contribution to Organizational Culture

Among the most influential scholars, Edgar Schein made significant contributions in the 1980s, developing a framework for analyzing and influencing organizational culture. His work has been referenced in numerous studies (Pedersen, 1991; Pedersen & Sørensen, 1989; Phillips, 1990).

Schein's model identifies four key processes in culture formation:

1. Manifestation – How culture becomes visible in daily practices.

2. Realization – How culture translates into behaviors.

3. Symbolization – The use of symbols, rituals, and traditions.

4. Interpretation – How members understand and internalize cultural elements.

To understand how leadership influences organizational culture, it is essential to examine the driving factors behind a leader’s beliefs and practices.

Leadership and Cultural Change

Organizations vary in their cultural characteristics, often shaped by symbols, heroes, and rituals (Hofstede et al., 1990). Barkdoll (2006) argued that leaders often reshape culture to align with their vision and preferences.