Organisational Culture Defined
- “The beliefs, assumptions, and shared understanding of what’s normal / not normal, who belongs/doesn’t belong.”
- Edgar Schein (culture researcher):
- “Culture is created by leaders. One of the most decisive functions of leadership is creating, managing, and, if necessary, destroying culture.”
Five Primary Ways Leaders Shape Culture
What leaders pay attention to, measure, and control
- Feedback shapes what the organisation values.
Response to crises
- Handling challenges → does it produce freedom & creativity or fear & restriction?
Leader modelling, teaching, coaching
- Leaders must be intentional about what they demonstrate and correct.
Allocation of rewards & recognition
- Who gets promoted? For what qualities?
- Rewards may include recognition, celebrations, or public affirmation (not only money).
Criteria for selection, promotion, and dismissal
- What kind of people do you hire? (Catalysts? Analysts?)
- How do you evaluate and develop them?
Secondary Ways Culture Is Shaped
Physical environment:
- Office structure, building layout, wall art, etc.
- These subtle signals reinforce organisational values.