2.5 Organisational Structure
Types of organisational culture:
Elements of organisational culture:
• Charles Handy came up with the idea of four distinct types of culture as he
• described by Edmonds and Glaser as ‘how things are argued that different types of cultures are necessary for the success of
done around here’ different organisations
• comprised of a company’s values, norms, beliefs, • Power Culture
attitudes and behaviours of the overall system and of the • an individual or a selected group of people make decisions for the
members of the organisation organisation
• Vision of the organisation - the aim and mission of an • procedure and formal rules are not dominant, so communication is highly
organisation, this corporate culture must be consistent centralised
with this • results are pivotal in assessing achievement on an employee
• Values - core of the organisational culture, helps achieve • leadership tends to be autocratic
the vision. • centralised decision making speeds up the process
• Practises - putting values into practise. • less bureaucracy
• People - practises of internal or external recruitment and • Role Culture
a thorough recruitment process strive to find the right • structured procedures and well communicated rules and hierarchies for the
employee with a similar vision smooth operation of an organisation
• History and Folklore - unique history to influence future • Power lies in the position and designation of roles rather than quality of an
employees and to inspire a workforce individual
• Elements of corporate culture • focus on the ‘rule book’ in dealing with everyday situations
• dress code - formal or informal • hiring an promotion are done in a traditional way and focus on the
• layout of the office - traditional private or open space procedures
shared with peers • role culture often bureaucratic, with multiple hierarchies and long chains of
• communication - traditional of informal command
• hierarchy - tall or flat • Handy described this culture as a temple as they are often old, stable and
• Advantages of a strong organisation culture established, more likely to withstand temporary natural disasters
• sense of harmony which leads to more staff retention • Task Culture
• encourages team work • supports dynamic, innovative and flexible companies by giving power to
• reduces misunderstanding experts within a group.
• works as a guiding star in achieving the company’s • Roles are often flexible, and employees are expected to take various
goals and objectives positions according to the requirements of the company
• reduces possible conflicts that may arise from a • Teamwork, group dynamic and relationships between peers are seen to be a
cultural gap decisive factor in getting the work done.
• Disadvantages of a weak organisation culture • Managers allocate different employees to specific projects based on their
• confusion amongst employees skill set and experience. The group then works mostly independently,
• lack of harmony prioritising finishing the work
• sense of suspicion and negative talk • task culture promotes problem-solving and teamwork
• a visible sign of unproductively and fatigue • matrix organisational structure
• potential fall of profit • strength of a task culture lies in all its strands and connections so Handy
• lack of confidence described it as a net
• Person Culture
• Person culture emerges when employees with a similar knowledge base,
skills and training come together to contribute to individual businesses
• This culture values every person as an expert and relies on their experiences
and expertise
Individuals influence on corporate culture: • Values the contribution made by individual employees, and companies tend
to be employee centric
• The degree of influence an individual exerts on a culture • rigorous recruitment
depends on the size of the business, how strong the • companies with these cultures offer very generous financial and non-
existing culture of the business is, and the position the financial rewards to recruit and retain the best employees
individual holds within the company • encourages good communication between employees and managers
• Changing culture involves changing values, belief • Handy described person culture using an image of a constellation of starts,
systems, and expectations, which requires time and where each star represents a valued individual
effort.
• Chan Kim and Mauborgne came theorised 4 strategies
to influence existing culture:
• Cognitive - employees must have some Culture Clashes
understanding of why there is any need to change the
existing corporate culture • Circumstances that can lead to cultural clashes
• Reallocation of resources - shifting resources from • mergers and acquisitions - some companies are formal, some are informal,
one area to another critical area individuals cannot cope with the change in leadership styles, employees find
• Motivation - there is a need to motivate employees to it difficult to assimilate the new vision and mission of the company,
support the change employees who cannot speak the official language often experience
• Internal politics - needs to be understood before the difficulties.
modification • Change in leadership - new leader often comes up with new idea for the
• Creating a strong organisation culture organisation and pushes for a new culture
• drafting a concise vision/mission statement and • Growth - companies face numerous problems related to differences in
sharing it with the different stakeholders working habits, working ethos, working hours, and public holidays when
• minimising inconsistencies between what is being companies start operating abroad
practised and what is expected according to the • Consequences of culture clashes
visions and mission of an organisation • employees become fearful for their job due to inorganic growth
• aligning organisation structure in accordance with the • employees question job and pay security from an increase in staff from a
expected culture merger or acquisition
• creating a sense of history and folklore • confusion in the workplace about procedures, norms, rules and new
• promoting a sense of desired value systems
• sense of division develops from two different companies that have merged
• company may face a ST decrease in profitability because of low productivity
Types of organisational culture:
Elements of organisational culture:
• Charles Handy came up with the idea of four distinct types of culture as he
• described by Edmonds and Glaser as ‘how things are argued that different types of cultures are necessary for the success of
done around here’ different organisations
• comprised of a company’s values, norms, beliefs, • Power Culture
attitudes and behaviours of the overall system and of the • an individual or a selected group of people make decisions for the
members of the organisation organisation
• Vision of the organisation - the aim and mission of an • procedure and formal rules are not dominant, so communication is highly
organisation, this corporate culture must be consistent centralised
with this • results are pivotal in assessing achievement on an employee
• Values - core of the organisational culture, helps achieve • leadership tends to be autocratic
the vision. • centralised decision making speeds up the process
• Practises - putting values into practise. • less bureaucracy
• People - practises of internal or external recruitment and • Role Culture
a thorough recruitment process strive to find the right • structured procedures and well communicated rules and hierarchies for the
employee with a similar vision smooth operation of an organisation
• History and Folklore - unique history to influence future • Power lies in the position and designation of roles rather than quality of an
employees and to inspire a workforce individual
• Elements of corporate culture • focus on the ‘rule book’ in dealing with everyday situations
• dress code - formal or informal • hiring an promotion are done in a traditional way and focus on the
• layout of the office - traditional private or open space procedures
shared with peers • role culture often bureaucratic, with multiple hierarchies and long chains of
• communication - traditional of informal command
• hierarchy - tall or flat • Handy described this culture as a temple as they are often old, stable and
• Advantages of a strong organisation culture established, more likely to withstand temporary natural disasters
• sense of harmony which leads to more staff retention • Task Culture
• encourages team work • supports dynamic, innovative and flexible companies by giving power to
• reduces misunderstanding experts within a group.
• works as a guiding star in achieving the company’s • Roles are often flexible, and employees are expected to take various
goals and objectives positions according to the requirements of the company
• reduces possible conflicts that may arise from a • Teamwork, group dynamic and relationships between peers are seen to be a
cultural gap decisive factor in getting the work done.
• Disadvantages of a weak organisation culture • Managers allocate different employees to specific projects based on their
• confusion amongst employees skill set and experience. The group then works mostly independently,
• lack of harmony prioritising finishing the work
• sense of suspicion and negative talk • task culture promotes problem-solving and teamwork
• a visible sign of unproductively and fatigue • matrix organisational structure
• potential fall of profit • strength of a task culture lies in all its strands and connections so Handy
• lack of confidence described it as a net
• Person Culture
• Person culture emerges when employees with a similar knowledge base,
skills and training come together to contribute to individual businesses
• This culture values every person as an expert and relies on their experiences
and expertise
Individuals influence on corporate culture: • Values the contribution made by individual employees, and companies tend
to be employee centric
• The degree of influence an individual exerts on a culture • rigorous recruitment
depends on the size of the business, how strong the • companies with these cultures offer very generous financial and non-
existing culture of the business is, and the position the financial rewards to recruit and retain the best employees
individual holds within the company • encourages good communication between employees and managers
• Changing culture involves changing values, belief • Handy described person culture using an image of a constellation of starts,
systems, and expectations, which requires time and where each star represents a valued individual
effort.
• Chan Kim and Mauborgne came theorised 4 strategies
to influence existing culture:
• Cognitive - employees must have some Culture Clashes
understanding of why there is any need to change the
existing corporate culture • Circumstances that can lead to cultural clashes
• Reallocation of resources - shifting resources from • mergers and acquisitions - some companies are formal, some are informal,
one area to another critical area individuals cannot cope with the change in leadership styles, employees find
• Motivation - there is a need to motivate employees to it difficult to assimilate the new vision and mission of the company,
support the change employees who cannot speak the official language often experience
• Internal politics - needs to be understood before the difficulties.
modification • Change in leadership - new leader often comes up with new idea for the
• Creating a strong organisation culture organisation and pushes for a new culture
• drafting a concise vision/mission statement and • Growth - companies face numerous problems related to differences in
sharing it with the different stakeholders working habits, working ethos, working hours, and public holidays when
• minimising inconsistencies between what is being companies start operating abroad
practised and what is expected according to the • Consequences of culture clashes
visions and mission of an organisation • employees become fearful for their job due to inorganic growth
• aligning organisation structure in accordance with the • employees question job and pay security from an increase in staff from a
expected culture merger or acquisition
• creating a sense of history and folklore • confusion in the workplace about procedures, norms, rules and new
• promoting a sense of desired value systems
• sense of division develops from two different companies that have merged
• company may face a ST decrease in profitability because of low productivity
