REGARDED AS ONE OF THE MOST INFLUENTIAL MANAGEMENT BOOKS of all time, this fourth and completely updated edition of Edgar Schein’s Organizational Culture and E D G A R H . Leadership focuses on today’s complex business realities and draws on a wide range of S contemporary research to demonstrate the crucial role of leaders in applying the principles C of culture to achieve their organizational goals. H Edgar Schein explores how leadership and culture are fundamentally intertwined, and reveals key fi ndings about leadership and culture including: E S C H E I N • Leaders are entrepreneurs and the main architects of culture I • Once cultures are formed they infl uence what kind of leadership is possible N If elements of the culture become dysfunctional, it is the leader’s responsibility to do something to speed up culture change. In addition, the book contains new information that refl ects culture at different levels of analysis from national and ethnic macroculture to team-based microculture. AACCOO Praise for Prior Editions of Organizational Culture and Leadership NNUURR OORRGGAANNIIZZAATTIIOONNAALL “Worth reading again and again and again.” DDLLGG —Booklist TT AA LL UU CC UU LLTT UU RR EE “An organizational development pioneer uses an anthropolog- NN EE ical approach to address a leader’s role in shaping group and RR AA II organizational dynamics.” ZZ EE —Knowledge Management DD AA AANNDD EE “[Schein] is, to use an overworked word, a guru, the TT recognized expert in the fi eld.” RR II OO —Inside Business SS LLEEAADDEERRSSHHIIPP HH NN EDGAR H. SCHEIN is Sloan Fellows Professor of Management Emeritus at the Sloan School of Management at the Massachusetts Institute of Technology. He is the author of II AA numerous books, including Process Consultation Revisited, The Corporate Culture Survival PP LL Guide, Career Anchors, and most recently, Helping: How to Offer, Give and Receive Help. MANAGEMENT/LEADERSHIP 4 FOURTH EDITION www.josseybass.com T H E D I T I O N PPRREELLIIMMSS..iinndddd vvii 1177//0066//1100 77::1100 PPMM Organizational Culture and Leadership PPRREELLIIMMSS..iinndddd ii 1177//0066//1100 77::1100 PPMM Edgar H. Schein PPRREELLIIMMSS..iinndddd iiii 1177//0066//1100 77::1100 PPMM Organizational Culture and Leadership Fourth Edition PPRREELLIIMMSS..iinndddd iiiiii 1177//0066//1100 77::1100 PPMM Copyright © 2010 by John Wiley & Sons, Inc. All rights reserved. Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103-1741—www.josseybass.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/permissions. 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Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002. Jossey-Bass also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data has been applied for ISBN 978-0-470-18586-5 Printed in the United States of America fourth edition HB Printing 10 9 8 7 6 5 4 3 2 1 PPRREELLIIMMSS..iinndddd iivv 1177//0066//1100 77::1100 PPMM The Jossey-Bass Business & Management Series PPRREELLIIMMSS..iinndddd vv 1177//0066//1100 77::1100 PPMM PPRREELLIIMMSS..iinndddd vvii 1177//0066//1100 77::1100 PPMM Contents Preface to Fourth Edition ix The Author xv Part One: Organizational Culture and Leadership Defi ned 1. The Concept of Organizational Culture: Why Bother? 7 2. The Three Levels of Culture 23 3. Cultures in Organizations: Two Case Examples 35 4. Macrocultures, Subcultures, and Microcultures 55 Part Two: The Dimensions of Culture 5. Assumptions About External Adaptation Issues 73 6. Assumptions About Managing Internal Integration 93 7. Deeper Cultural Assumptions: What is Reality and Truth? 115 8. Deeper Cultural Assumptions: The Nature of Time and Space 125 9. Deeper Cultural Assumptions: Human Nature, Activity, and Relationships 143 10. Culture Typologies and Culture Surveys 157 11. Deciphering Organizational Cultures 177 vii TTOOCC..iinndddd vviiii 2211//0066//1100 55::1122 PPMM viii CONTENTS Part Three: The Leadership Role in Building, Embedding, and Evolving Culture 12. How Culture Emerges in New Groups 197 13. How Founders/Leaders Create Organizational Cultures 219 14. How Leaders Embed and Transmit Culture 235 15. The Changing Role of Leadership in Organizational “Midlife” 259 16. What Leaders Need to Know About How Culture Changes 273 Part Four: How Leaders Can Manage Culture Change 17. A Conceptual Model for Managed Culture Change 299 18. Culture Assessment as Part of Managed Organizational Change 315 19. Illustrations of Organizational Culture Changes 329 Part Five: New Roles for Leaders and Leadership 20. The Learning Culture and the Learning Leader 365 21. Cultural Islands: Managing Multicultural Groups 385 References 401 Index 415 On-line Instructor’s Guide is available at www.wiley.com/college/schein. TTOOCC..iinndddd vviiiiii 2211//0066//1100 55::1122 PPMM