Reference #485: Organizational Culture and Leadership

Absent major external stressors, and if the founder remains for a long time, early stage company culture evolves in small increments by assimilating what works well. This occurs through two basic processes: general evolution and specific evolution.

General evolution is the changing of the overall organisation culture. It occurs through diversification, gaining complexity, increased levels of differentiation and integration, and more.

Specific evolution is the changing of specific parts of the organisation, resulting in the formation of different subcultures. Subgroups adapt due to their environment and owing to their specific macrocultures such as occupational macroculture.

In an organisation's midlife and beyond, misalignment between company culture and subculture becomes a primary force for change.

Schein. Organizational Culture and Leadership, 2017. (235-236)

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