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EADM 826 - EXECUTIVE SEPTEMBER 11, 2020
BOOK SUMMARY
BY LIEW SHEN CHUA
ORGANIZATIONAL
CULTURE & LEADERSHIP
5th Edition by Edgar H. Schein with Peter A. Schein
SUMMARY
As technology improves, the society including business world and
education field become more and more diverse. Due to this reason,
on top of the theories and practices such as Ed Schein's three-level
culture model that were mentioned in previous editions, he has apply
these theories in a bigger multicultural scene in this edition. In this
book, Schein (2017) emphasize on
"culture as what a group learns, the explanation of how
leadership and culture formation are two sides of the same
coin, and the fact that the role of leadership changes with the
growth and aging of an organization" (p.xiv)
EDGAR H. SCHEIN
IN THIS ISSUE
Authors
PART 1: DEFINING THE
EDGAR H. SCHEIN
STRUCTURE OF CULTURE
Professor Emeritus of the Massachusetts
Institute of Technology (MIT) Sloan School of
pg 2-3
Management.
Education:
PART 2: WHAT LEADERS
Ph.D., Social Psychology, Harvard
University
NEED TO KNOW ABOUT
Publications:
Humble Inquiry (2013) MACRO CULTURES
Humble Consulting (2016)
pg 4-5
Humble Leadership (2017)
Awards:
Distinguished Scholar-Practitioner Award of
PART 3: CULTURE AND
the Academy of Management, 2009
Life Time Achievement Award from the LEADERSHIP THROUGH
International Leadership Association, 2012
STAGES OF GROWTH
Life Time Achievement Award in
Organization Development from the
pg 6-8
International OD Network, 2015
PETER A. SCHEIN
PART 4: ASSESSING
Strategy and OD consultant in Silicon
CULTURE AND LEADING
Valley
20+ years of industry experience in
PLANNED CHANGE
marketing and corporate development at
pg 9-11
technology pioneers.
Education:
SUMMARY
BA, Social Anthropology, Stanford
University
CRITICAL EVALUATION
Kellogg MBA, Marketing and
Information Management,
DISCUSSION QUESTIONS
Northwestern University
pg 12
1
PART 1: DEFINING THE STRUCTURE OF CULTURE
Chp 1
How to Define Culture in General
There are many ways to define culture as it occurs in various levels of "observability". Schein (2017) included several
cultural elements in the book and the most important one is accumulated shared learning. He also mentioned
about culture is form through time together, past learning experiences, sharing same thoughts and emotions. He
concluded four main culture elements in this chapter.
Four Main Culture Elements
A Dynamic Definition of Culture
Taught to New Members: The Process of
Socialization or Acculturation
"The culture of a group can be defined
as the accumulated shared learning of
that group as it solves its problems of
Structural Stability Breadth
external adaption and internal
shared
integration; which has worked well
wide spread in all assumptions
enough to be considered valid and,
stable, dynamic aspects of
therefore, to be taught to new members
organization
as the correct way to perceive, think,
feel, and behave in relation to those
problems." (p.5)
proven
Depth patterning or integration
EDGAR H. SCHEIN
accurate
deepest, unconscious aspect, rituals, values, and behaviors
less tangible, less visible merge into a whole which is
the essence of culture
perceiving,
thinking,
and feeling
(Schein, 2017, p.9-11)
in "accurate"
way
Chp 2
The Structure of Culture
This chapter discussed the three levels of culture by Schein which can be utilized to illustrate
and evaluate cultural circumstance including "an individual, a micro system, a subculture, an
organization, or a macro culture" (p.29) and it is significant to understand the differences
between these three levels.
"CULTURE AS A SET OF
BASIC ASSUMPTIONS
DEFINES FOR US WHAT
TO PAY ATTENTION TO,
WHAT THINGS MEAN,
HOW TO REACT
EMOTIONALLY TO
WHAT IS GOING ON,
AND WHAT ACTIONS TO
TAKE IN VARIOUS
KINDS OF SITUATIONS".
(P.22)
Edgar H. Schein
images sources:
https://images.app.goo.gl/Z4mXeSMeNuABmPBR6
2
Chp 3, 4, 5
Multiple Implications to Three Cases
Case 1: Digital Equipment Corporation
in Maynard, Massachusetts
Digital Equipment Corporation (DEC) was a major American computer industry company that started around the mid-
1950s. In the case here, it is seen as a young start up. Schein (2017) analyzed this case using the three level model, and
the artifacts of this company was open and relax which was observed from the surface such as buildings and basic
interactions, the espoused beliefs was personal responsibility, innovation and truth through conflict which was
observed from company's slogan and daily meetings, and the basic assumptions is that small group meetings is just to
achieve the goal, so even members had intense debate, they could have confidence and find out solutions. However,
even DEC tried to adjust basic elements as company evolved, some remain unchanged and lead to its decline.
This case had showed that "a young company's culture provides identity, meaning, and daily motivation. If the
company is successful, that culture will become very strong and explicitly part of its identity" (Schein, 2017, p.41) and
culture should not be generalized unless fully understand the company.
PHOTO BY MARTIN R. SMITH
Case 2: Ciba-Geigy Company
in Basel, Switzerland
The Ciba-Geigy Company was a Swiss multinational decentralized chemical industry company in the late 1970s and
early 1980s, and ultimately merged with Sandoz become Novastis. This company was mature and culturally diverse.
Schein (2017) evaluated that the artifacts of this company was rank and status which was observed from different
treatment such as dining room and food depending on the rank, the espoused beliefs and values was employee often just
follow what their boss said while not debating with them which was observed from meetings are just for announcement
and information gathering, and the assumptions was it seems like it was somehow lack of innovation and new ideas
which were observed from they have little lateral communication happening between different department in the
company. It also had developed "a systematic rotation of future executives into overseas assignments so that an effort
to become more international would be reflected in all of its managers" (Schein, 2017, p.56).
This case had revealed that artifacts and norms of an organization are not able to be deciphered unless assumptions
and interrelationship were discovered. Schein (2017) also mentioned that "culture is deep, pervasive, complex, patterned,
and morally neutral" and we should overcome our "own cultural prejudices" (p.57) in order to others culture.
Case 3: Singapore's Economic Development Board
The cultural elements of Singapore's Economic Development Board (EDB) has showed how Singapore has developed from a
third country to a rich industrial country rapidly. The artifacts in this case was dictatorial repressive political regime, the
espoused beliefs and values" was their shared vision, and the assumptions were somehow a combination of traditional
Chinese values with Western values. Schein (2017) has categorized the "assumption about the role of government in
economic development" which are " State Capitalism", "Absolute Long-Range Political Stability", "Collaboration among
Sectors", "An Incorruptible, Competent Civil Service", " Primacy of People and Meritocracy" and "Strategic Pragmatism",
and "the cultural paradigm of the EDB as an organization" which are "Teamwork: Individualistic Groupism",
"Cosmopolitan Technocracy", "Boundaryless Organization: Modulated Openness", "Non-Hierarchic Hierarchy: The Boss as
Patron, Coach, and Colleague", "Extended Trust Relationships: Clients as Partners and Friends" and "Commitment to
Learning and Innocation" (p.63-72).
Conclusion of Three Cases
From these three cases, we learned about each organization's cultural components, and how these components influence
the company as it evolved. In conclusion, as Schein (2017) suggested that
"we will not need analyses at the level of complexity of these cases, but we will need a process for quickly identifying
which cultural elements will help us manage the desired changes and which ones will hinder us and become targets of
images sources: change" (p.74)
hhttps://en.wikipedia.org/wiki/Novartis#Ciba-Geigy 3
https://www.pngfind.com/mpng/iwxRTbh_digital-logo-digital-equipment-corporation-logo-png-transparent/
https://logovtor.com/wp-content/uploads/2020/02/singapore-economic-development-board-edb-logo-vector.png
PART 2: WHAT LEADERS NEED TO KNOW ABOUT MACRO CULTURES
Chp 6
Dimensions of The Macro-Cultural Context
This chapter presented several major dimensions of macro culture such as national and ethnic cultures in order to allow better understanding
in cultural variation and sometimes to solve specific issues. Schein (2017) had also "reviewed the major ways in which language, reality, time,
space, truth, human activity, nature, and relationships can be categorized" (p.103) and suggested that stereotyping countries just by regarding
few easily visible dimensions that were proposed by survey-based models should be avoided. He also mentioned that "the rules that govern
relationship across hierarchical and functional boundaries are perhaps the most important area to explore when multicultural groups try to
work together" (Schein, 2017, p.103).
Ethnographic, Observational, and Interview - Based Research
Basic Time Orientation
Language and Context
Basic Time - group has a basic orientation tend to consider about the past,
present, or future
High context - word or phrase is hard to be interpreted, their
Monochronic Time - only one thing can be done at a time, and work are done
meanings are different depend on context
by sequence (linear time concept)
Low context - the word or phrase meaning is clear and more
Polychronic Time - several things can be done at the same time, its more
rigorous
about achievement but not length of time working (cyclical time concept)
Planning Time - leaders see this time more in a monochronic way which time is
manageable and can be planned, and seeks for a closure
The Nature of Reality and Truth
Development Time - ""things will take as long as they will take," referring to
natural biological processes that have their own internal time cycles" (p.91),
Physical reality - "can be determined empirically by objective"
and concept is more open-ended
(p.87) or by scientific test
The Meaning of Space: Distance and Relative Placement
Social reality - consensus by group members, does not need to be
Distance and Relative Placement - distance and space are aspects of macro culture,
empirically determinable
and are consensus among groups. For example, the distance when people talk to each
other depends on their relationship which formal relationships often have distance of
Both Moralism and Pragmatism's approaches are used to test reality
several feet, while intimate relationships will only have few inches
Moralism - "seeking validation in a general philosophy, moral
The Symbolic of Space - to show organization culture and leaders' values and
system, or tradition" (p.87)
assumptions which it has symbolic function and often being utilized to guide members'
Pragmatism - "seeking validation in their own experience" (p.87)
behavior
Body Language - utilizing "gestures, body position, and other physical cues to
What is "Information"?
communicate our sense of what is going on in a givin situation and how we relate to the
other people in it" (p.94)
When a group tests for reality are being conducted and make
Time, Space, and Activity Interaction
decision, all the involved constitutes data, information and
"Monochronic time assumptions have specific implications for how space is organized"
knowledge should be consensus
(p.95).
Polychronic time assumptions "requires spatial arrangements that make it easy for
simultaneous events to occur" (p.95)
Depending on the work pattern, both distance and time are considered in the physical
(Schein, 2017, p.85-88) (Schein, 2017, p.88-96)
layout.
Human Essence and basic motivation
Assumptions about the Nature of
Assumptions about Human Nature
Human Relationships
"Workers as rational-economic actors"
(Four Levels of Relationship in Society)
"Workers as social animals with primarily social needs"
"Workers as problem solvers and self-actualizers,
whose primary needs are to be challenged and to use
Exploitation, No Relationship or a
Level -1
their talents"
Negative Relationship
"Workers as complex and malleable" (p.97, as cited in
Schein, 1980)
Acknowledgement, Civility,
Level 1
Transactional Role Relation
Assumptions about Appropriate Human Activity
The "Doing" Orientation - Humans should be in charge
and vigorously have authority of own environment and
Recognition as a Unique Person;
fate
Level 2
The "Being" Orientation - Humans should be fatalistic Working Relationships
as nature is not able to be effected, so we must accept
and enjoy the moment we have.
The "Being-in-Becoming" Orientation - This orientation
Strong Emotions - Close
Level 3
exist between two extreme orientations as stated above
Friendships, Love and Intimacy
which "the individual must achieve harmony with nature
by fully developing his or her own capacities, thereby
(Schein, 2017, p.100-101, Exhibit 6.4)
achieving a perfect union with the environment" (p.99).
(Schein, 2017, p.96-100)
4
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