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)