In the blog last week, we explored an overview of the organisational model developed by Handy. This week we will focus on an examination of the strengths and weaknesses of the Power culture.
Introduction to the Power culture
According to Handy, a power culture reflects the characteristics of Zeus and can be depicted in the form of a spiderweb in which all power and decision-making resides at the centre. Then, in terms the daily operations, it functions more as a group than a team in that members have individual roles and report directly to the central figure or someone immediately responsible for them.
This is arguably the most common culture internationally as it reflects start-up initiatives, small businesses, and departments within larger organisations that are thought to require strong central control such as in finance or accounting. However, as we shall see, paradoxically this culture comes under threat as the number of employees increases due to the successful performance of the organisation.
Overview of the Power culture in action
The management style
Based on the ownership of power, not ability
The strengths of Power culture
Face to face communication
Few rules and procedures
Little bureaucracy
Rapid decision-making
Can adapt at speed
Reality orientated
Risk taking
Market and customer sensitive
The weaknesses of Power culture
Overdependence on the central power figure
Autocratic or paternalistic management style
As the culture grows face to face communication becomes impossible
The central power figure starts to lose direct control of employees
Specialist functions and groups form
A need for formality arrives
Hierarchies form
Decision-making slows
New employees are required
Question 1
How might working in this culture develop the skills of young people?
Question 2
Why might this culture be experienced as exciting by some people?
Question 3
What triggers change in such cultures?
We shall explore Question 3 in the next blog.
Reference
Handy, C. (1993). Understanding organisations. Penguin.
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