If strategy is seeking change, then it is important to analyse how the culture of an organisation may also need to change: the two areas are closely linked. Although each organisation has its own unique culture, Handy 41 has used the work of Harrison to suggest that there are four main types within the general analysis undertaken above. Leaders and managers can use these as a starting point in deciding how they want to shape the culture of their organisations over time. Each of the four styles is linked with an ability for slow or fast strategic change – the organisation will want to refl ect on this connection
as it shapes future organisational culture.
The power culture
The organisation revolves around and is dominated by one individual or a small group. Examples : small building companies; formerly, some newspapers with dominant proprietors. Strategic change : fast or slow depending on the management style of the leader
The role culture
This organisation relies on committees, structures, logic and analysis. There is a small group of senior managers who make the fi nal decisions, but they rely on procedures, systems and clearly defi ned rules of communication. Examples : civil service, retail banks. Strategic change : likely to be slow and methodical.
The task culture
The organisation is geared to tackling identifi ed projects or tasks. Work is undertaken in teams that are fl exible and tackle identifi ed issues. The teams may be multidisciplinary and adaptable to each situation. Examples : advertising agencies, consultancies. Strategic change : will depend on the circumstances
but may be fast where this is needed
The personal culture
The individual works and exists purely for him/herself. The organisation is tolerated as the way to structure and order the environment for certain useful purposes, but the prime area of interest is the individual. Examples : co-operatives, communes and also individual professionals such as architects or engineers working as lone people in larger organisations such as health authorities. Strategic change : can be instant, where the individual decides that it is in his/her interests to make such a move.
Qualifying the four cultural types
In considering the four main types of organisational culture, there are four important qualifi cations:
1 Organisations change over time . The entrepreneur, represented by the power culture , may mature into a larger and more traditional business. The bureaucracy, personifi ed by the role culture , may move towards the more fl exible structure of the task culture . Hence, an analysis may need to be reassessed after some years
2 Several types of culture usually exist in the same organisation . There may be small task-teams concentrating on developing new business or solving a specifi c problem and, in the same organisation, a more bureaucratic set-up handling large-volume production in a more formal structure and style. Strategic
management may even need to consider whether diff erent parts of the organisation should develop diff erent cultures – for example, a team culture for a radical new venture, a personal culture for the specialist expertise required for a new computer network
3 Different cultures may predominate, depending on the headquarters and ownership of the company . Hofstede’s research indicates that national culture will also have an infl uence and will interact with the above
basic type.
4.Organisational culture changes only slowly . It is important that leaders do not expect instant shifts in
basic attitudes, beliefs and ways of acting in an organisation
For the above four reasons, the analysis of strategic cultural change needs to be approached with caution. Nevertheless, there are many organisations, both large and small, where the mood, style and tone are clear enough as soon as you walk through the door: Google’s bright colours, ‘Lego’ models and bean bags represent just one example. There is one prevailing culture that permeates the way in which business is done in that organisation.
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