Contents

Introduction................................................................................................................................................2
Handy’s Four Types of Culture....................................................................................................................2
Power Culture.........................................................................................................................................2
Role Culture............................................................................................................................................2
Task Culture............................................................................................................................................2
Person Culture........................................................................................................................................2
Hofstede’s Cultural Dimensions.................................................................................................................2
1. Power Distance...............................................................................................................................3
2. Uncertainty Avoidance...................................................................................................................3
3. Individualism V Collectivism...........................................................................................................3
4. Masculinity - Femininity.................................................................................................................3
5. Time Orientation.............................................................................................................................3
Power..........................................................................................................................................................4
Position Power........................................................................................................................................4
Person Power..........................................................................................................................................4
Politics.........................................................................................................................................................4
The Weeds..............................................................................................................................................5
The Woods..............................................................................................................................................5
The High Ground.....................................................................................................................................5
The Rocks................................................................................................................................................5
Bibliography................................................................................................................................................6
Introduction
Zara is a Spanish clothing retailer based in Galicia, Spain. Founded by Amancio Ortega in 1975,
it is the flagship chain store of the Inditex group, the world's largest apparel retailer. The fashion
group also owns brands such as Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara
Home and Uterqüe. (ZARA, 2021)

Handy’s Four Types of Culture

According to Charles Handy’s model, there are 4 types of culture which an organization follows
- Power, Task Culture, Person Culture and Role culture.
Power Culture
Power is concentrated among a few people, in the hands of one leader or a small group of
individuals only. This type of culture is based on the work of individuals; performance and
success are significant elements of it. a power culture is typical of smaller organizations, such as
a sports team, where decisions are rather made by the leader (and other co-workers). It is
important to distinguish between entrepreneurial businesses and small family businesses, as they
are not necessarily one and the same, and some family businesses can often become quite
introspective finding it difficult to change their working ways. The benefits of a power culture
are that an organization is quick and responsive, but the disadvantages are that it can be difficult
to work for someone who is likely to have strong opinions and may well change their mind
quickly, expecting others to keep pace.
Role Culture
Power mainly derives from the personal position; there is strict control, and the bodies and roles
within such organizations are more important than individuals. Role cultures are present in larger
organizations which normally include more units/bodies, such as a sports association being
constituted by various departments. Mainly different bodies and the rights delegated to them are
what count here. This is typically characterized by organizations which have a high degree of
formalization and a high degree of centralization such as bureaucracies or large stable
businesses.  There are well established formal rules and procedures, and a well-defined
organizational hierarchy which is clearly understood and tightly enforced.
Task Culture
the structure of such cultures resembles a matrix, where those individuals with expertise gain
power rather than those having favorable positions or strong personalities. These organizations
are flexible and adaptable. Task and person cultures are irrelevant to the case of sports
organizations; however, if we take the example of a sporting goods manufacturer being made up
of design engineers or a legal counsellor’s sports lawyers, these two types of culture can also be
observable, more or less, within the field of sport. They respond well to a competitive
environment, but do require individuals to be highly collaborative and communicative, and also
be able to work well on their own initiative. Team dynamics are likely to be very important to
the overall success of such a culture, which is also why it is important to understand how
multicultural teams can influence organizational outcomes. It is not necessarily an ideal
environment for those who like structure and regularity in their working day.
Person Culture
Individuals stand in the core of such organizations, which basically have no structure as these
cultures are made up of non-cooperating individuals creating a cluster. The size of an
organization is also determined by the certain types described above. In this type of culture,
horizontal structures are most applicable. Each individual is seen as valuable and more important
than the organization itself. This can be difficult to sustain, as the organization may suffer due to
competing people and priorities. Its advantages are that individuals operate on a self-motivated
basis so need limited formal guidance or structure, but conversely it can be very difficult to
marshal people in such culture as they are used to being self-directed, and can react badly to even
small changes in rules and procedures. (Boundless, 2019)

Hofstede’s Cultural Dimensions

This approach is commonly associated with Geert Hofstede (1984, 1988 & 2001), as described in
Schermerhorn and Bachrach (2017). He explored national cultures through the identification of
five different dimensions, which are:
 Power distance
 Uncertainty avoidance
 Individualism-collectivism
 Masculinity-femininity
 Time orientation

1. Power Distance
Power distance is the degree a society accepts or rejects the unequal distribution of power
in organizations and society. In high power distance cultures such as Japan, we expect to
find great respect for age, status and titles. This could create problems for an American
visitor used to the informality of a more moderate power distance culture, and
accustomed to using first names and casual dress in the office.
2. Uncertainty Avoidance
Uncertainty avoidance is the degree a society tolerates or is uncomfortable with risk,
change, and situational uncertainty. In high uncertainty avoidance cultures, such as
France or Japan, one would expect to find a preference for structure, order and
predictability.
3. Individualism V Collectivism
Individualism-collectivism is the degree to which a society emphasizes an individual’s
accomplishments and self-interest, versus the accomplishments and interests of groups. In
Hofstede’s data, the United States had the highest individualism score of any country.
 4. Masculinity - Femininity
Masculinity-femininity is the degree a society values assertiveness and materialism
versus feelings, relationships, and quality of life. You might think of it as a tendency to
emphasize stereotypical masculine or feminine traits and attitudes towards gender roles.
Visitors to Japan, with the highest masculinity score in Hofstede’s research, will probably
notice how restricted career opportunities can be for women.
5. Time Orientation
This is the degree to which a society emphasizes short-term or long-term goals.
Americans are notorious for being impatient and wanting quick, even instant
gratification. Accordingly, American companies are expected to achieve short-term
results. Many Asian cultures are the opposite, valuing persistence, being patient, and are
willing to work for long-term success.
However, Schermerhorn and Bachrach (2017) add that Hofstede warned against acting with the
mistaken assumption that a generalized cultural value applies always and equally to all members
of a specific culture. (Schermerhorn, 2017) (Hofstede, 1984)

Power
Power is the ability to employ force and mobilize resources, energy and information on behalf of
a preferred goal. Power is the probability that one actor within a social relationship will be in a
position to carry out his own will despite resistance.” The acquisition and maintenance of power
is one of the most socially motivating processes that occur in modern organizations.
Position Power
a. Coercive Power: It is the most primordial type of power in a workplace or in an
organization. Coercive power takes place when someone in higher authority threatens a
subordinate with different punishments if certain tasks or duties is not performed or
completed in time and correctly. This power is conveyed through fear of being demoted,
losing one’s job, or receiving a poor review of performance. It is gotten through
threatening others. It is of great importance to know that coercive power is most
effectively used in cases where the business is in a serious crisis. It can also be used when
there is going to be a cut in personnel due to shift in management and transitions.
b. Legitimate Power: This power comes from having a position of power in an
organization; example is being a boss in the organization or a key member of a leadership
team. It exists when subordinates of someone in authority obeys orders given to them
because they have the believe that the person is in a position of power to be able to give
them such orders. For example, it is the CEO who decides on the overall direction of the
company and also determines the resource needs of the organization
c. Reward Power: subordinates are rewarded and given incentives for carrying out tasks
and orders given by a superior. Example of reward power includes promotion, bonuses,
increase in salaries, extra-time off from work, public praise, and so on. The main aim of
reward power is spurring up subordinates for effectiveness and productivity.
Person Power
a. Expert Power: this is a type of power that comes from one’s skills, knowledge and
experience. People naturally respect and follow those who are experts in a certain field.
Subordinates who know that their superior has an expert power feel so relaxed because
they believe that he will guide them correctly due to his many experiences.
b. Referent Power: This power comes from being respected and trusted. Leaders in the
business industry have gained referent power by entrusting their employees with so much
tasks and responsibilities in performing their jobs. This type of power is best achieved in
the organization when the turnover of the employee is low and also in a work
environment where a personal relationship exists.
(Dubrin, 2012) (Pfeffer, 2013)

Politics
Political behavior are those activities that are not required as part of one’s formal role in the
organization, but that influence, or attempt to influence, the distribution of advantages and
disadvantages within the organization. Legitimate and illegitimate political behaviors are
common in organizations. Politics is a fact of life in organization.
Metaphors for Politics are:
The Weeds
The weeds, where personal influence and informal networks rule, can form a dense mat through
which nothing else grows. In these circumstances, informal networks can be a countervailing
force to legitimate power and the long-term interests of the organization. For instance, they can
thwart legitimate changes needed to put the organization on a sounder long-term financial
footing.
The Woods
The woods are characterized by informal processes and guidelines. The challenge here is to
make the implicit explicit. Ask “stupid” questions, bringing implicit organizational routines and
behaviors to the surface. Ask clients, recent hires or temporary contractors about their
observations and experience at the company; a fresh pair of eyes will often identify things that
incumbents can’t see. Get benchmark information from surveys and specialist experts.
The High Ground
If you find yourself on the high ground, which combines formal authority and organizational
systems, you can use feedback from clients, customers or end-users to highlight difficulties and
make the case that your current structure or process is constraining the organization. Since
organizations with a problematic high ground tend to be risk-averse, you can also try
emphasizing that not changing can be even riskier than trying something new.
The Rocks
Navigating the terrain here, where hard or formal sources of authority reign, consists of drawing
on these sources of power, rather than fighting against them. Your best bet is to redirect the
energy of a dysfunctional leader, either through reasoned argument or by appealing to their
interests. (George, 2010) (Robbins, 2008)
Bibliography
Boundless, 2019. Boundless Management. [Online]
Available at: https://www.boundless.com/management/textbooks/boundlessmanagement-textbook/
organizational-culture-and-innovation-4/culture-33/types-of-organizationalculture-187-3936/
[Accessed 7 March 2022].

Dubrin, A. J., 2012. Leadership. (3rd Ed). New York: Houghton Mifflin..

George, J. a. J. G. R., 2010. Understanding and Managing Organizational Behavior (4th ed.),. New Jersey,
USA: Pearson/ Prentice Hall..

Hofstede, G. H., 1984. Culture’s consequences: International differences in work-related values.. NY:
SAGE Publications..

Pfeffer, J., 2013. Managing with power: Politics and influence in organizations.. Boston: Harvard Business
School Press..

Robbins, S. J. T. &. S. S., 2008. Organizational Behavior,. 12th ed ed. New Delhi: Prentice Hall.

Schermerhorn, J. R. J. &. B. D. G., 2017. Exploring management (6th ed.).. NY: Wiley.

ZARA, 2021. Zara Home. [Online]

Available at: www.zara.com.
[Accessed 4 March 2022].