12 min read·Organisational Structure, Culture, Governance and Sustainability

Organisational Culture

Learning outcomes

  • Define organisational culture using Schein's iceberg model.
  • Apply Handy's cultural typologies (Power, Role, Task, Person).

What is Culture?

Culture is 'the way we do things around here'.

Schein's Iceberg Model

Edgar Schein argued culture has three levels:

  1. Artifacts (Visible): Dress code, office layout, logos.
  2. Espoused Values (Conscious): The official mission statement, stated goals.
  3. Basic Assumptions (Invisible): Unconscious, taken-for-granted beliefs (e.g., 'we never question the boss').
Practice Question

According to Schein, a company's official mission statement posted on the wall is an example of:

Common Mistake

Culture is not just Artifacts

Changing the dress code to 'casual Friday' (Artifact) does not change the underlying culture if the Basic Assumption remains that senior managers are unapproachable dictators.

Charles Handy's Cultural Typologies

Handy linked cultures to Greek gods:

  • Power (Zeus): Controlled by a central figure. Fast decisions, low bureaucracy. (Common in startups).
  • Role (Apollo): Highly bureaucratic, strict job descriptions, hierarchical. (Common in government/traditional banks).
  • Task (Athena): Focus on getting the project done. Matrix structures, expertise is valued over job titles. (Common in ad agencies/tech).
  • Person (Dionysus): The organisation exists for the individuals. (Common in barristers' chambers or medical practices).
Practice Question

A highly bureaucratic government department where employees strictly follow rulebooks and respect job titles is an example of which of Handy's cultures?

Examiner Tip

Exam Focus

Cultural clashes during mergers are highly testable. If a Role culture buys a Task culture, the Task employees will likely quit because they hate the new bureaucracy.

Worked Scenario: Post-Merger Integration
Try the scenario yourself before revealing the worked answer.
Practice Question

In a 'Task' culture, power and influence are primarily derived from:

Practice Question

Which of Handy's cultures is typically represented by a 'spider's web' structure, with a dominant leader in the center?

Practice Question

According to Hofstede's cultural dimensions, a society that accepts a high degree of unequal power distribution has a high:

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