Charles Handy’s Typology of Organisational Culture

[David Harbour]

‘Organisational culture’ is used to refer to the result or consequence of continuous negotiations on the meaning and values, and resources and assets between the members of an organisation and between the employees and the organisational environment (Seel, 2000). The organisation is brought into existence from the daily decisions made by its internal actors and teams (Bacharach & Lawler, 1980). Therefore, bargaining and negotiation, the formation of teams or coalitions, and the use of influencing power or tactics are used to gain control of tangible and intangible resources.



The actions of Brett Jones in Tanzania such as his participation in local rituals, monitory incentives to speed along bureaucracy of services, and his personal lifestyle were seen as conflicting with the organisation’s values and cultures by his superiors. Further, Jones’ selection and hiring processes could be seen as practicing nepotism. Jones’ continuation with the company also posed a risk to their operations. The two issues serve to negatively affect his company’s international reputation as well as leave the company vulnerable to exploitation by the Tanzanian officials and citizens. Strategies in organisational culture when aligned with management techniques can address issues such as employee retention and their continued commitment to the firm (Russo et al., 2013). Further, it enables a common vision to be developed between employee and the firm so as to accommodate both their needs and so give rise to a new form of engagement.

Cultural Intelligence Theory:

It is the ability of the individual to function effectively in situations of cultural diversity (Ang& Dyne, 2015). It evolves on the ability to adapt and so exhibit behaviours that are “culturally tuned” to the beliefs and values of others (Peterson, 2011). It further includes linguistic, special, intrapersonal and interpersonal intelligences, which iterate the importance of learning the native language of costumers, the appropriate location for introductions and meetings, the awareness of one’s own culture and business style, and the ability to understand other and the motivation behind their actions respectively (Martin & Chaney, 2012). Cultural intelligence is common in expatriates whose work exposes them to a new culture. Cultural intelligence enables them to better understand this foreign system and so participate in it, thus they adapt to the new status quo. Developing effective communication is a key aspect of cultural intelligence as it enables employees and organisations to overcome cultural barriers.

Charles Handy’s Typology:

Handy (1978) proposed the existence of four types of organisational culture namely power, role, task, and person customs. Power culture is found in smaller organisations with a central power figure making political, not bureaucratic, decisions. The role customs is bureaucracy-like with emphasis placed on the structure of functions, and the administration is regimented and impersonal. The task culture is project oriented and employees are grouped into teams according to their skills and knowledge to perform the tasks set out to them. The person customs refers to a culture where the individual is emphasizes and facilities enable people with common interests to come together to execute their objectives. Power is shared and the loyalty to the organisation is fluid (Machado &Carvalho, 2008).

Recommendations:

The culture model followed at HG for its Tanzanian venture is a power model when Jones serves as the central decision maker. The decisions taken, such as the need for a ritualistic practice, the hiring process, and tipping are politically and culturally motivated. By adopting features of task customs, the company can play a bigger role in the decision making process and so work together with Jones to reach solutions that are not only culturally sound and sensitive but also are not offensive to the company culture and sensibilities of senior management. Further, it will allow the company to retain Jones in for the post of manager and make optimal use of his knowledge and skill as a company resource. Jones, even if removed from operational duties, could still serve as a valuable resource in developing cross-cultural tools and instruction for the employees involved in the next phase of the project.