In this video, we look at two opposed cultures that Schein defined, to give us our first, and simplest, introduction to the many different organizational models available. Schein's two organizational cultures have either an authority ethic, or an individual freedom ethic.

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The Nature of Organizations
This video is part of course module number 6.1.2
Program 6: Managing within Organizations
Course 1: The Nature of Organizations
Section 2: Organizational Models


Other videos in this section include:
Henry Mintzberg's 4 plus 2 Organizational Types - https://youtu.be/JmvYcskjh3E
Charles Handy's Gods of Management - https://youtu.be/yClxu7dzmB4
Charles Handy's Shamrock Organization - https://youtu.be/dGGKT0Mr_HA
Charles Handy's Federal Organization Model - https://youtu.be/69AYxCvT7m4
Charles Handy's Triple-I Company - https://youtu.be/gFRXiMkIg6k
The Matrix Organization Model - https://youtu.be/hJ9wbFgmtKM
Peter Senge's Learning Organization - https://youtu.be/k1k2h1l2VO0
Adhocracy - https://youtu.be/7QKm0Y3_Hr0
The Agile Organization - https://youtu.be/67NVUeFQMy4
Brian Robertson's Holacracy - https://youtu.be/hz3khhOLT5E
Virtual Organizations - https://youtu.be/Hsovj2jPNPA

LESSON NOTES
Edgar Schein saw organizational culture as a three-layered structure, with:
1. Underlying beliefs, or shared assumptions at the base
2. Values in the middle tier, and
3. Artefacts that we can easily see and experience – even as an outsider.
It’s at tier 3 that we can observe the greatest distinction between organizational models.

These models are easy to recognize.

Individual Freedom Ethic
• ideas come ultimately from individuals
• people are responsible, motivated, and capable of governing themselves
• truth can only be pragmatically determined by “fighting” things out and testing in groups
• such fighting is possible because the members of the organization view themselves as a family who will take care of each other.

Ultimately, this makes it safe to fight and be competitive. As a result, we see artefacts like open offices; movement around the office; conversation, discussions and arguments; lower levels of formality in addressing one another and in clothing.

Authority Ethic
• truth comes ultimately from older, wiser, better educated, higher status members
• people are capable of loyalty and discipline in carrying out directives
• relationships are basically lineal and vertical
• each person has a niche that is his or her territory that cannot be invaded
• the organization is a “solidary unit” that will take care of its members.

Artefacts often include a respectful air – sometimes even silence; closed doors, appointments for simple conversations, strict hierarchies and deference according to rank, formal dress

Full Article: Coming to a New Awareness of Organizational Culture - Sloan Management Review, Jan 1984 - https://sloanreview.mit.edu/article/coming-to-a-new-awareness-of-organizational-culture/ Needs paid subscription, but you can find PDF versions online

RECOMMENDED EXERCISE
1. Consider your current organization. What artefacts can you spot? Where is it on the spectrum between Schein's 2 organizational cultures? (2 MC CPD Points)
2. Repeat your assessment for each organization you have worked for. (2 MC CPD Points each)

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RECOMMENDED READING
- Understanding Organizations https://geni.us/oB774Do
- Images of Organization https://geni.us/hrOemEs
- Inside Organizations: 21 Ideas for Managers https://geni.us/YwwL
- Gods of Management: The Four Cultures of Leadership https://geni.us/bpPeC5


Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-work-kit (the links are affiliated)

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