Have you ever walked into a company and immediately sensed the atmosphere? In some places, there’s an undeniable buzz—people collaborate openly, conversations flow naturally, and teams genuinely seem to enjoy working together. Meanwhile, in other organizations, the environment feels cold and rigid, interactions are formal and mechanical, and no one appears truly satisfied with their workplace.
So, where does this difference come from? The answer lies in organizational culture! It’s the invisible force that defines what it feels like to work in a company.
But what exactly is organizational culture? How does it form? And what are its different layers? Let’s break it down together.
What Is Organizational Culture?
(A simple and practical definition)
Organizational culture is “the way things are done around here.”
It’s a blend of beliefs, values, behaviors, and norms that guide a company. Every organization has a culture, even if it never explicitly talks about it.
A more academic definition from Edgar Schein
(one of the most renowned researchers in organizational culture):
“Organizational culture is a set of shared beliefs that a group has learned over time and uses to solve internal and external challenges.”
Why Does Organizational Culture Matter?
✅ It influences decision-making: Organizations with a fast and agile decision-making culture tend to perform better in competitive markets.
✅ It helps attract and retain talent: Employees are naturally drawn to workplaces with positive cultures.
✅ It boosts productivity: When employees feel aligned with the company’s culture and values, they become more motivated and engaged.
The Three Levels of Organizational Culture
To better understand organizational culture, Edgar Schein developed a three-layered model that explains its structure.
1. Artifacts – Visible and Tangible Elements
🔹 This is the most surface-level and observable aspect of culture—what you can see, touch, or experience in a company.
Some concrete examples:
- Office Design and Layout:
- Companies like Google and Spotify have open, colorful workspaces because their culture values innovation and collaboration.
- In contrast, a financial institution might have a more formal and structured office setting.
- Employee Dress Code:
- A company that requires suits and ties likely has a more hierarchical and formal culture.
- A startup that allows jeans and T-shirts probably embraces a relaxed and informal atmosphere.
- Interaction Styles:
- Casual, bureaucracy-free meetings signal an open and agile culture.
- On the other hand, if every minor task requires filling out forms, you’re in a bureaucratic culture.
🔴 The Challenge at This Level:
Artifacts don’t always tell the full story. A company might have inspiring quotes on the walls, but in reality, the work environment could be stressful and uninspiring.
2. Espoused Values – Stated Organizational Beliefs
🔹 This layer represents the values and principles a company claims to follow. These values often appear in official statements, company websites, or speeches by leadership.
Examples of organizational values:
- Netflix: “Freedom and Responsibility” – Employees have a high degree of autonomy but are expected to be highly accountable.
- Amazon: “Customer Obsession” – Every decision should be made with the customer in mind.
🔴 A Critical Note:
A value only matters if it is reflected in real behavior.
- If a company claims that “collaboration is key” but fosters internal competition, that value is just an empty slogan.
3. Basic Assumptions – The Deepest, Unconscious Level
🔹 This is the most ingrained and unspoken aspect of culture—beliefs so deeply embedded that employees may not even be aware of them. These assumptions develop over time and are difficult to change.
Examples of fundamental assumptions:
- Human Nature: Are people inherently trustworthy, or do they need constant supervision?
- Decision-Making Style: Is the organization hierarchical, or does it encourage participatory decision-making?
- Attitude Toward Change: Is the company risk-taking or highly conservative?
✅ Why Is This Level Important?
Because these assumptions shape all behaviors and decisions within an organization, often without people realizing it.
Example: How Google’s Culture Aligns Across These Three Levels
🔹 Artifacts (Visible Signs):
- Open, colorful workspaces, casual dress code, informal meetings.
🔹 Espoused Values (Stated Values):
- “Innovation, Freedom of Expression, Creativity.”
🔹 Basic Assumptions (Deep Beliefs):
- “Innovation thrives when people feel safe and free.”
✅ The Result?
Because all three levels align, Google’s culture remains strong and authentic.
How to Build a Strong Organizational Culture?
✅ Define real values. If you declare a core value, it should be reflected in every decision the company makes.
✅ Leaders must set the example. If executives don’t embody the culture, no one else will.
✅ Reinforce the right behaviors. A strong culture is shaped by rewarding positive behaviors.
✅ Listen to employees. The best way to understand an organization’s real culture is to ask the people who work there.
Organizational culture is the heartbeat of every company. It determines whether an organization thrives or struggles with internal challenges.
From Google to Amazon, every successful company has a strong culture that is evident in all its layers.
Now, over to you—what kind of culture does your workplace have? Do you feel that organizational culture impacts your performance? Let’s talk about it! 😊
