Schein's Organizational Culture Model

Aug 20, 2025

Overview

This lecture explains Edgar Schein's model of organizational culture, which consists of three levels: artifacts, values, and assumptions, and discusses how these levels shape and reflect organizational behavior.

Schein’s Three Levels of Organizational Culture

  • Edgar Schein identified three levels of organizational culture: artifacts, values, and assumptions.
  • Artifacts are visible elements such as branding, furniture, dress code, rituals, job titles, and organizational stories.
  • Artifacts are easy to observe but not always easy to interpret without deeper understanding.
  • Espoused values are the stated values and norms that guide expected behavior within the organization.
  • Values are often communicated through public statements, slogans, and branding.
  • Underlying assumptions are deep, often unconscious beliefs taken for granted by members of the organization.
  • Assumptions drive interpretations, decisions, and behaviors within the organization.

Types of Underlying Assumptions (Schein, 1985)

  • Assumptions about truth and how it is determined shape decision-making and perception.
  • Assumptions about time influence how organizational members respect and utilize time.
  • Assumptions about space concern how space is owned, allocated, and respected within the organization.
  • Assumptions about human nature cover beliefs about whether people are good or bad and whether they can change.
  • Assumptions about the organization's relationship with its environment affect decisions and public perception.
  • Assumptions about social power govern power dynamics, cooperation, competition, leadership, conflict resolution, and decision-making.

Implications for Organizational Change

  • Surface changes (artifacts) alone do not shift organizational culture.
  • Lasting culture change requires altering deep assumptions underpinning the organization.
  • Recognizing the levels is essential for understanding and influencing organizational culture.

Key Terms & Definitions

  • Artifacts — Visible symbols or manifestations of culture (e.g. branding, dress code).
  • Espoused Values — Publicly stated principles and norms guiding behavior in the organization.
  • Underlying Assumptions — Deep-seated, taken-for-granted beliefs that shape organizational culture.

Action Items / Next Steps

  • Review examples of artifacts, values, and assumptions in a real or hypothetical organization.
  • Reflect on which assumptions might need to change to shift organizational culture.