Chapter 8 Organisational culture

1 culture
1.1 Definition
Hofstede: Culture is the collective programming of the mind which
distinguishes the members of one category of people from another.

Edgar Schein: Organisational culture is the set of shared, taken for

granted assumptions that a group holds and that determines how it
perceives, thinks about and reacts to the environment.

Handy: It shows the way we do things around here.

1.1 Three levels concerning culture
 1.1 Three levels concerning culture
(a) Artefacts. These are the influences on culture that can be seen. For
example, how employees dress, the layout of the office, the way in
which people behave and their attitude.
(b) Espoused values. These are the strategies, goals and objectives of the
organisation. For example, an emphasis on low cost or an emphasis on
excellent service.
(c) Basic underlying assumptions. These are the taken-for granted beliefs.
They can be called a ‘paradigm’, which is a set of assumptions held in
common.
1.2 Factors shapes organisational culture
Founder. The founder‘s own values and beliefs set the tone of the
organisational culture. In other words, the founder basically determines the
company's culture.
History. Culture reflects what past experiences organisations have
experienced.
Leadership and management style. Different leadership and management
style could have a direct impact on employees as well as culture of
organisations.
External environment. The differences between various countries,
regions, industries and businesses could all contribute to the formation and
transformation of an organisation’s culture.
2 Writers on culture
2.1 Harrison and Handy (culture and structure)

r
Powe
culture
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R o l T a s
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culture culture
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Perso
culture
2.1 Harrison and Handy
a. Power culture (Zeus)
The organisation is controlled by a key owner or founder. The
organisation is centralised, power is direct, personal, informal. It
suits small organisations.
2.1 Harrison and Handy
b. Role culture (Apollo)
Classical, rational organisation, bureaucracy, stable,
slow-changing, formalised, authority is based on
position and function.
2.1 Harrison and Handy
c. Task culture (Athena)

Focused on outputs and results, problems solved,

projects completed, team-based, valuing expertise to
get job done.
2.1 Harrison and Handy
d. Person culture/Existential (Dionysus)
The purpose of the organisation is to serve the
interests of the individuals who make it up:
management is directed at facilitating,
administering.
Example question 1
An organisation is controlled by a key central figure, owner or founder. It is a
small organisation where people all know each other and get on well.
Which of the following is the culture of the above organisation as
recognized by Handy?
A. Authority

B. Dominance

C. Power
Example question 2
Which kind of culture is typically found in a matrix organisation?
A. Task culture
B. Person culture
C. Power culture
D. Role culture
Example question 3
In a higher education teaching organisation an academic faculty is organised into courses and
departments, where teaching staff report both to course programme managers and to subject
specialists, depending on which course they teach and upon their particular subject specialism.

According to Charles Handy’s four cultural stereotypes, which of the following describes
the above type of organisational structure?

A Role

B Task

C Power

D Person
2. Writers on culture
Handy also matched appropriate cultural models to Robert Anthony's
classification of managerial activity-Anthony hierarchy .

Strategic management
Power culture

Tactical management
Task culture

Operational management
Role culture
2.2 Hofstede (Culture and national environment)
Hofstede recognised that people in different countries often hold
different values and that these will influence organisational
culture. His research mainly focuses on the impact of national
culture on organisational culture. The influences are:
2.2 Hofstede (Culture and national environment)
a) Power distance
The extent to which unequal distribution of power is accepted

Key words:

High PD: accept greater centralisation, top-down chain command, closer

supervision, subordinates have little expectation of influencing decisions.

Low PD: expect less centralisation, flatter organisational structures,

subordinates expect involvement and participation in decision-making
2.2 Hofstede (Culture and national environment)
b) Uncertainty avoidance
The extent to which security, order and control are preferred to
ambiguity, uncertainty and change

Key words:

High UA: respect certainty, value written rules and regulations,

standardisation, strong need for consensus, no tolerance for
deviance

Low UA: respect flexibility and creativity, less written rules, more
tolerance for deviance, risk, conflict and deviation from norms.
2.2 Hofstede (Culture and national environment)
c) Individualism (vs. Collectivism)

The extent to which people prefer to live and work in individualist or

collectivist ways

Key words:

High individualism: emphasis autonomy and individual choice and

responsibility, prize individual initiative (I)

Low individualism: emphasis interdependence, social acceptability,

relationships are more important than task achievement. (WE)
2.2 Hofstede (Culture and national] environment)
d) Masculinity (vs. Femininity)

The extent to which social gender roles are distinct

Key words:

High masculinity: assertiveness, competition, decisiveness, wealth, success;

Low masculinity(femininity): modesty, tenderness, personal relationship, quality of life

Example question 4
Which writer is MOST closely associated with differing national
perspectives on culture?
A Handy
B Hofstede
C Schein