HOW ORGANIZATIONAL CULTURE DEVELOPS

The values and norms that are the basis of culture are formed in four ways. First, culture is formed by the leaders in the organization, especially those who have shaped it in the past. Schein (1990) indicates that people identify with visionary leaders – how they behave and what they expect. They note what such leaders pay attention to and treat them as role models. Second, as Schein also points out, culture is formed around critical incidents – important events from which lessons are learnt about desirable or undesirable behaviour. Third, as proposed by Furnham and Gunter (1993), culture develops from the need to maintain effective working relationships among organization members, and this establishes values and expectations. Finally, culture is influenced by the organization’s environment. The external environment may be relatively dynamic or unchanging.

Culture is learned over a period of time. Schein (1984) stated that there are two ways in which this learning takes place. First, the trauma model, in which members of the organization learn to cope with some threat by the erection of defence mechanisms. Second, the positive reinforcement model, where things that seem to work become embedded and entrenched. Learning takes place as people adapt to and cope with external pressures, and as they develop successful approaches and mechanisms to handle the internal challenges, processes and technologies in their organization.


Where culture has developed over long periods of time and has become firmly embedded, it may be difficult to change quickly, if at all, unless a traumatic event occurs.