Charles Hendy’s Organization Culture Classification
Organizational culture has been given a lot of attention in recent years. Culture consists of the shared values of an organization - the beliefs and norms that affect every aspect of work life, from how people greet each other to how major policy decisions are made. The strength of a culture determines how difficult or easy it is to know how to behave in the organization.
The British management writer, Charles Handy suggests that we can classify organizations into a broad range of four cultures. The formation of ‘culture’ will depend upon a whole host of factors including company history, ownership, organization structure, technology, critical business incidents and environment, etc.
The four cultures he discusses are ‘Role’, ‘Club’, ‘Task’ and 'Existential’. The purpose of the analysis is to assess the degree to which the predominant culture reflects the real needs and constraints of the organization. Handy uses diagrammatic representation to illustrate his ideas:
1. Apollo-Role
A strong role culture places a premium on order and efficiency. Power is hierarchical and clearly defined in the company's job descriptions. Decision making occurs at the top of the bureaucracy. An apollonian response to a change in the environment generally starts by ignoring changes in circumstances, and by relying on the existing set of routines. Life insurance companies reflect an Apollonian organization.
This has been typified as a Greek temple and has often been stereotyped as portraying bureaucracy in its purest form. The apex of the temple is where the decision making takes place; the pillars of the temple reflect the functional units of the organization which have to implement the decisions from the apex.
The strength of the culture lies in specialization within its pillars. Interaction takes place between the functional specialism by job descriptions, procedures, rules and systems. This is very much an organization culture run by a paper system. An authority is not based on personal initiative but is dictated by job descriptions. Co-ordination is by a narrow band of senior staff. This is the only coordination required as the system provides the necessary integration. Handy states that the job description is more important than the skills and abilities of those who people the culture. Performance beyond the role prescription is not required or encouraged.
The authority of position power is legitimate. Personal power is not. This reflects Weber’s pure theory of bureaucracy. System effectiveness depends upon adherence to principles rather than personalities.
The authority of position power is legitimate. Personal power is not. This reflects Weber’s pure theory of bureaucracy. System effectiveness depends upon adherence to principles rather than personalities.
Handy suggests that this culture is appropriate in organizations which are not subject to constant change. The culture functions well in a steady-state environment, but is insecure in times of change. The role culture is typified in government departments, local authorities, public utilities and the public sector in general. This sort of culture finds it extremely difficult to change rapidly. The role culture is typified by rationality and size. A large state enterprise usually holds this culture.
2. ZEUS-Club Culture
Power is concentrated in the hands of one individual, the top boss. Control radiates from the centre's use of personal contacts over procedures. The most powerful person dominates the decision making process. Proximity to the boss is vitally important as he frequently uses his network of friendships and old boys. Decisions are made quickly, but their quality depends almost entirely on Zeus and his inner circle. The Club culture's administration is small as are its costs. Investment banks and brokerage firms reflect organizations with a dominant club culture.
Handy describes the power culture as a ‘web’. He suggests that this reflects the concentration of power of a family-owned business, which can either be extremely large or small. The family operation with strict responsibilities going to family members’ responsibility given to personalities rather than expertise creates the power structure of the ‘web’.
Handy describes the power culture as a ‘web’. He suggests that this reflects the concentration of power of a family-owned business, which can either be extremely large or small. The family operation with strict responsibilities going to family members’ responsibility given to personalities rather than expertise creates the power structure of the ‘web’.
Examples to which Handy refers include the massive institutions in the USA, run as a small family business at the top and known as ‘robber barons’. Power is concentrated in a small area, the centre of which is the wheel or the centre of the web. Power radiates out from the centre, usually a key personality, to others in the family who send information down to departments, functions or units. The important point to note is that, because power and decision-making is concentrated in so few hands, the strategists and key family members create situations which others have to implement. It is difficult for others outside the ‘family network’ to influence events. (‘Dallas’, the long running TV soap displays this culture with the Ewing family.)
The ability of the power culture to adapt to changes in the environment is very much determined by the perception and ability of those who occupy the positions of power within it. The power culture has more faith in individuals than committees and can either change very rapidly and adapt or ‘fail to see the need for change’ and die.
3. ATHENS-Task Culture
Power is derived from the expertise required to complete a task or project. The work, itself, is the leading principle of coordination. Decision making occurs through meritocracies. Employees move frequently from one project or group to another. Task culture fosters a high level of adaptation and innovation by emphasizing talent, youth and team problem-solving, although excessive individual independence can lead to irresponsibility. Task cultures are expensive organizations that require highly paid experts driven to analyze organizational problems in depth. High cost drives organizations to construct routines and adopt a greater Apollonian work mode. Task cultures are often short lived. Ad agencies and consultancies reflect a dominant
Athenian culture.
This is characteristic of organizations which are involved in extensive research and development activities they are much more dynamic. They are constantly subject to change and have to create temporary task teams to meet their future needs. Information and expertise are the skills that are of value here.
The culture is represented best by a net or lattice work. There is close liaison between departments, functions and specialties, liaison, communication and integration are the means whereby the organization can anticipate and adapt to change quickly.Influence in this team culture is based upon expertise and up-to-date information where the culture is most in tune with results. The dangers for this culture exist when there is a restriction in resources causing it to become more power’ or ‘role’ orientated.
The culture is represented best by a net or lattice work. There is close liaison between departments, functions and specialties, liaison, communication and integration are the means whereby the organization can anticipate and adapt to change quickly.Influence in this team culture is based upon expertise and up-to-date information where the culture is most in tune with results. The dangers for this culture exist when there is a restriction in resources causing it to become more power’ or ‘role’ orientated.
4. DIONYSIUS-Existential Culture
Organizations exist for individuals to achieve their goals. Employees see themselves as independent professionals who have temporarily lent their services or skills to the organization. Management is considered an unnecessary counterweight and given the lowest status.
Decision making occurs by consent of the professionals. The Dionysius culture can lead to poisonous, ideological wars among its professionals. Universities and professional service firms reflect the dominant Dionysian culture.
Decision making occurs by consent of the professionals. The Dionysius culture can lead to poisonous, ideological wars among its professionals. Universities and professional service firms reflect the dominant Dionysian culture.
In this culture, Individuals are independent in the organization, they do have their own tasks and duties and they are actually independent in spite of this, they have to share resources in the organization.
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