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Business Administration QUESTION #9587
Question 1
Schein's model of organizational culture identifies three levels: artifacts, espoused values, and underlying assumptions. A new CEO announces a public commitment to innovation but the organization continues to punish failure. At which level does the real culture reside, and what does this reveal about cultural change management?
  • At the artifacts level — the innovation posters and speeches are the culture; changing them is sufficient to change the organization
  • At the underlying assumptions level — the actual culture is the deep, unconscious belief that failure is unacceptable; this is the hardest level to change and requires sustained behavioral intervention to surface and challenge these assumptions✔️
  • At the espoused values level — the CEO's public commitment is the culture; it needs to be reinforced through formal policy before it becomes real
  • At the artifacts level — because only observable behaviors constitute organizational culture; psychological assumptions are outside management's control
Correct Answer Explanation
Schein's model is hierarchical: artifacts (visible) reflect espoused values (stated beliefs) which may mask underlying assumptions (unconscious, taken-for-granted beliefs). When behavior contradicts stated values, the underlying assumptions are controlling conduct. Punishing failure despite 'valuing innovation' reveals the deep assumption that failure is dangerous — the hardest cultural level to change because it is rarely articulated or examined.