How it works
The organizational culture of every
business is different, reflecting
the ethos of the company, its
workplace habits, and the image
the company projects. It is also tied
to the type of work that has to be
done. In a high-stakes financial
trading company, the pace and
pressure of the work makes the
atmosphere of the corporate
environment crackle, whereas
in a company relying on creativity
for its products, the mood is likely
to be more relaxed. The type of
incentives offered to management
and employees may also affect the
workplace, resulting in either a
competitive or a collaborative
culture, or a mix of both.
Types of corporate cultures
Management experts have tried to explain how organizational cultures work.
Charles Handy, a former professor at the London Business School, describes
them in terms of four major types: power, task, role, and person.
Control systems Used by
managers to set standards and
measure performance
Leverage Power to influence a
person or situation
Paradigm Value system of
goals, mission, and beliefs
Business cultures
Every organization has a particular workplace environment,
consciously or unconsciously shaped by the personalities, values,
and behavior of the people leading it and working in it.
NEED TO KNOW
Power culture
Driven by a powerful individual at the center of the
organization, who is relied on for decision-making and
the company’s successes. Those closest to the center
have most influence. Typical of a family-owned business.
Role culture
Where a company is based on the structural support of
specialized roles. Each role is crucial and will persist even
if the person occupying it leaves. Procedures and systems
are strictly followed, as in a government department.
bureaucratic / controlling
POWER
JOB
DESCRIPTIONS
PROCEDURES
RULES
SYSTEMS
DECISIONS MADE
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HOW COMPANIES WORK
Who’s who
Many factors reinforce a culture. To bring about change, the workforce needs
to be inspired by different motivations, values, and types of role models.
WHAT SHAPES CORPORATE CULTURE?
Task culture
Project-oriented work where a project’s completion is
the motivating force. Relies on teamwork and individuals’
expertise, but results are more important than personal
objectives. Found in technology companies, for example.
Person culture
Company power and influence is shared among individuals
who work semi-autonomously. Individuals count for more
than the company, which is made up of people with similar
specialist training, such as in an architects’ practice.
entrepreneurial / flexible
86%
of senior
managers
in global
organizations
agree that
organizational
culture is critical
to success
Organization size
Big business, or
small company
Company structure
Strict hierarchy,
or power shared
among many people
Founding values
Includes origination
myths and stories
Symbols
Titles, dress codes,
interior aesthetic
Control systems
Rewards, incentives,
performance
assessment
Leaders
Their personality
and behavior
P
A
R
T
N
E
R
S
H
I
P
TASK
TASK
TASK
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