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ACCA Strategic Professional · Strategic Business Leader · Enabling success: talent management

Tandem Pharma has a strong, long-established culture of long hours and loyalty to a dominant founder-led leadership group. It now wants to build an inclusive, diverse workforce and has hired many women and minority-group professionals, but 40% leave within two years, citing exclusion from informal decisions. Applying Schein's cultural levels, which diagnosis and action is most appropriate?

The issue lies in deep underlying assumptions about who belongs and how decisions are made, not just visible artefacts. Tandem's leaders must challenge and change those assumptions, through role modelling and more inclusive decision processes, alongside diverse recruitment, or high attrition will continue.

  1. AVisible artefacts such as diversity posters are sufficient; no further action is needed
  2. BThe problem lies in the underlying assumptions that shape informal behaviour; leadership must challenge and change these assumptions as well as recruit more diverse staffCorrect
  3. CCultural change is unnecessary; the company should simply raise salaries for new hires
  4. DThe company should reduce diversity targets since the culture is a fixed strength

Explanation

Schein's model has artefacts, espoused values and basic underlying assumptions. Recruitment and posters change the surface, but exclusion from informal decisions reflects deep assumptions about who belongs. Lasting change requires leaders to confront these assumptions through role modelling, changed decision processes and reward. Pay alone or abandoning targets does not resolve the cause.

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