ACCA F1, P3 Charles Handing Cultural Types
Charles Handy identifies the four culture types to explain how different cultures affect the businesses and organizational structures. He assigned each cultural type a name of Greek God. It does not influence the understanding of the cultural types. It is only written for your knowledge here.Power culture (Zeus)
In power culture importance is given to person having power to take decisions. Power culture is like a dictatorship in which nearly no rules and regulation exists other than made by a dictator.
In power culture, decisions are taken on almost centralized basis and swiftly without involving others into discussion. Individual working in that culture cannot question the validity of decisions taken by person having the power. Rationality of decisions is just limited to the knowledge of the powerful person(s).
Power culture is usually associated with entrepreneurial business structure.
Commonly power is derived from legal ownership of the business. Example is corner retail shops.
Role Culture (Apollo)
In role culture importance is given to the position (role) of a person in the organizational hierarchy. However, the persons themselves are not important. No matter how specialist knowledge and experience they possess they cannot influence the decision outside their scope of role and responsibilities.
Roles are formally defined with the help of job descriptions and organizational charts. Business organizations have clear policies, procedures and authority/responsibility defined. Role culture is associated with Bureaucratic organizational structure.
Example is family run businesses where ethical standards do not permit to question rationality of decisions taken by senior family members.
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