Leadership, in particular, as stated earlier, exerts a powerful influence, along with other factors, on culture. 39 Exhibit 5.6 Role of Culture in Organizational Alignment (Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license) Strategy, structure, people, and systems all are affected by an organization’s culture, which has been referred to as the “glue” that holds an organization together. Ed Schein, one of the most influential experts on culture, also defined organizational corporate culture as “a pattern of shared tacit assumptions learned or developed by a group as it solves its problems of external adaptation and internal integration that have worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.” 38Īs Exhibit 5.6 illustrates, culture plays an important integrating role in organizations both externally and internally. Purpose, embodied in corporate culture, is embedded in and helps define organizations. Understand the differences between values-based ethics and compliance in organizations.Īn organization’s culture is defined by the shared values and meanings its members hold in common and that are articulated and practiced by an organization’s leaders.