Organisational Culture

Organisational culture is often described as 'the way we do things around here'. It encompasses the shared values, beliefs, attitudes, and norms that shape behaviour within an organisation. Culture is a powerful force — it influences how decisions are made, how people interact, how customers are treated, and how the organisation responds to change.

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Why Culture Matters

Culture affects every aspect of business performance:

• Employee behaviour — culture shapes what is considered acceptable and unacceptable conduct
• Decision-making — it determines how much risk is tolerated, how fast decisions are made, and who is involved
• Innovation — some cultures encourage experimentation; others punish failure
• Recruitment and retention — people are attracted to cultures that match their values
• Strategic change — culture can be the greatest enabler or the greatest barrier to implementing new strategies

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Handy's Four Cultural Types

Charles Handy (1993) identified four types of organisational culture, each associated with a different structure and management style:

1. Power Culture

Symbol: Web (spider's web)

In a power culture, control radiates from a central figure or small group. Decisions are made quickly by those at the centre, with few rules or procedures.

Feature	Description
Decision-making	Centralised, fast, intuitive
Structure	Flat, informal, few layers
Communication	Direct, from the centre outwards
Employees	Judged on results, not process
Best suited to	Small, entrepreneurial organisations
Example	Owner-managed businesses, start-ups

Strengths: Fast decision-making, clear leadership, agile response to opportunities.

Weaknesses: Over-dependence on the central figure, can become autocratic, difficult to sustain as the organisation grows.

2. Role Culture

Symbol: Greek temple (with pillars)

A role culture is characterised by formal rules, procedures, and clearly defined job roles. Authority comes from a person's position in the hierarchy, not their personality.

Feature	Description
Decision-making	Formal, following established procedures
Structure	Tall hierarchy, functional departments
Communication	Vertical, through the chain of command
Employees	Defined by their job description
Best suited to	Large, stable organisations in predictable environments
Example	Civil Service, banks, insurance companies

Strengths: Predictability, consistency, clear accountability, security for employees.

Weaknesses: Slow to adapt, stifles creativity, can become bureaucratic and impersonal.

3. Task Culture

Symbol: Net (matrix)

A task culture is project-oriented. Teams are assembled from across the organisation to solve specific problems or deliver particular outcomes. Power lies with those who have the relevant expertise, not with those in formal positions.

Feature	Description
Decision-making	Devolved to team level
Structure	Matrix, project-based, flexible
Communication	Lateral, collaborative
Employees	Valued for their skills and contribution
Best suited to	Organisations that need to respond flexibly to changing demands
Example	Consultancies, creative agencies, tech companies

Strengths: Flexible, innovative, motivating for employees, draws on diverse expertise.

Weaknesses: Can be difficult to control, potential for conflict between project teams and functional departments, may struggle without clear leadership.

4. Person Culture

Symbol: Cluster (loose grouping of stars)