Organizational culture refers to the beliefs, values, attitudes, and behaviors that shape an organization's character, practices, and interactions. It is the collective personality of an organization that reflects its members' shared values and assumptions. Organizational culture is a critical factor in organizational success since it impacts employee engagement, motivation, and performance. Therefore, it is essential to understand the different levels of organizational culture and how they influence an organization's operations.

The first level of organizational culture is the artifacts level. Artifacts refer to the visible and tangible aspects of an organization, such as its physical environment, symbols, and language. These elements are the most accessible and explicit expressions of an organization's culture, and they are readily observable by outsiders. Artifacts include the organization's dress code, office layout, architecture, technology, and office equipment. They also encompass the organization's language, rituals, celebrations, and myths.

At the artifacts level, an organization's culture is primarily shaped by its external environment, including its industry, competition, and stakeholders' expectations. For instance, a technology company's culture may include open workspaces, casual dress codes, and a preference for innovation and risk-taking. On the other hand, a law firm's culture may be more formal, with traditional office spaces, formal dress codes, and a preference for stability and caution. Therefore, an organization's artifacts level reflects its industry's norms and expectations, as well as its unique identity and strategic priorities.

However, the artifacts level is the most superficial and least enduring aspect of organizational culture. It is prone to change and manipulation since it is often driven by external pressures and fads. For instance, an organization may adopt a new logo, redesign its website or slogan to align with the latest marketing trends. However, these changes do not necessarily reflect a change in the organization's values, beliefs, or practices. Therefore, the artifacts level needs to be supplemented by deeper aspects of organizational culture to create a sustainable and authentic culture.

The second level of organizational culture is the espoused values level. Espoused values refer to the organization's stated and published beliefs, philosophies, and goals. They are the formal expressions of an organization's culture and are often enshrined in its mission statement, code of conduct, and vision statement. Espoused values represent the organization's ideal culture and how it wants to be perceived by its stakeholders, including employees, customers, investors, and the public.

At the espoused values level, an organization's culture is primarily shaped by its leadership, including its CEO, board of directors, and senior management. These leaders articulate the organization's values, set its strategic direction, and communicate its vision to its members. For instance, a CEO may emphasize the importance of transparency, innovation, and customer satisfaction as the organization's core values. This emphasis may lead to the adoption of specific practices, such as open communication channels, employee empowerment, and product innovation.

However, espoused values can be inconsistent with an organization's actual practices and behaviors. In other words, an organization may profess a set of values that it does not practice or uphold in reality. For instance, an organization may claim to value diversity and inclusion, but its hiring and promotion practices may reveal a bias towards certain groups. Therefore, the espoused values level needs to be reinforced by the deeper aspects of organizational culture, including assumptions and beliefs.

The third level of organizational culture is the basic underlying assumptions level. Basic underlying assumptions refer to the unconscious, taken-for-granted beliefs, and values that shape an organization's behavior and practices. These assumptions are deeply ingrained in an organization's members and are often invisible and unspoken. They reflect an organization's core identity and shape its members' perceptions, attitudes, and decisions.

At the basic underlying assumptions level, an organization's culture is primarily shaped by its history, traditions, and collective experiences. These experiences create shared meanings and narratives that guide an organization's behavior and practices. For instance, an organization that has experienced a significant crisis or success may develop a set of assumptions that shape its future actions. Similarly, an organization that has a long history and traditions may have underlying assumptions that reflect its legacy and identity.

However, basic underlying assumptions can be resistant to change and hard to identify since they are often unconscious and unspoken. Therefore, changing an organization's underlying assumptions requires a deep understanding of its history, traditions, and collective experiences. It also requires a willingness to challenge the status quo and embrace new perspectives and beliefs.

The first level of organizational culture is the artifacts level, which includes the visible and tangible aspects of an organization's culture. The second level is the espoused values level, which includes the formal expressions of an organization's culture. The third level is the basic underlying assumptions level, which includes the unconscious, taken-for-granted beliefs and values that shape an organization's behavior and practices. Understanding these levels is essential to developing a sustainable and authentic organizational culture that fosters employee engagement, motivation, and performance.