Is Handy’s Model Of Culture Still Relevant Today?

Is Handy s Model of Culture still relevant today?

Charles Handy, a renowned management theorist, has contributed significantly to the understanding of business cultures. But over forty years after it was created, does Handy s Models of Culture still apply to modern day businesses? lt;/p>Do his principles of organisational design still apply today in the ever changing world of corporate organisations, where in the last decade alone there have been notable shifts in business cultures, driven by technological advancements, globalisation, changes in societal values and economic trends. lt;/p>There has been a rise in remote working, a focus on inclusivity, employee wellbeing, agile working environments, greater transparency in communication and of course the huge impact technology has had on all businesses, from hybrid offices to remote meetings, flexible working and AI.

In the aftermath of all this change, do his principles of culture still hold value in the modern business environment?

Handy`s model focuses on four organisational cultures, each with distinct characteristics that influence how people work together and how organisations operate. Handy`s model provides a framework for understanding how different cultures within an organisation can shape its values, norms, ways of working and behaviours. It highlights the importance of aligning organisational culture with strategic objectives and recognising the impact of culture on organisational effectiveness.

An understanding of organisational culture is also becoming increasingly important as it becomes easier and more common for businesses to operate internationally. Most successful international businesses have embraced the need to adapt their cultures and be responsive, understanding and inclusive as they operate overseas.

Here`s a brief overview of how Handy`s model helps us understand business cultures:

Power Culture:

In a power culture, power is concentrated in the hands of a few key individuals or a central figure.

Businesses with a power culture often have an autocratic leader at the helm - strong and decisive. Decision-making is centralised, and there`s quick communication and decision making. However, this does not work for all businesses and can lead to potential issues if the central authority is not effective or responsive.

Example: Tesla

Elon Musk, the CEO and founder is widely regarded as a transformational leader who exerts significant control over the entire business. He is deeply involved in all aspects of Tesla`s strategy, from operations to product development, innovation to marketing. His strong personality and direct involvement in decision making align with the traits of Handy`s Power Culture.

Role Culture:

A role culture is characterised by a focus on defined roles and responsibilities within a well-structured hierarchy.

Organisations with a role culture emphasise stability, efficiency, and clear job responsibilities. This will often be into the main functions of the business, Marketing, Operations, Finance and Human Resources. Bureaucratic structures are common, and processes are well-defined. However, there might be challenges in adapting to change or responding quickly to external shifts.

Example: Procter Gamble (PG)

PG is a multinational consumer goods business that is well known for its highly structured organisational setup. The company has a strong focus on roles and responsibilities, with clear hierarchies and standardised processes across its varied business units. Employees at PG are expected to work within their assigned roles whilst also contributing to the overall efficiency of the business.

Task Culture:

Task cultures are oriented around specific projects or tasks, emphasising flexibility, teamwork and effective use of employees skills.

Businesses with a task culture are often highly adaptable and quick to respond to changing conditions as well as flexible in the scope of what they can offer customers. Teams play a crucial role in an effective Task Culture and collaboration is essential. However, this flexibility can lead to challenges in maintaining overall organisational cohesion and direction.

Example: Google lt;/p>Google is renowned for its creative and collaborative work environment, which aligns closely with Handy`s task culture. The company encourages employees to work in cross-functional teams on various projects, fostering creativity and problem-solving. Google`s emphasis on agility, innovation and achieving results through teamwork reflects the characteristics of a task culture.

Person Culture:

Person cultures are characterised by individuals operating independently, with the organisation facilitating and supporting them to do their work.

In person cultures, individuals pursue their goals within the organisation, which can be common in professions like academia or partnerships. However, businesses with this culture might struggle to provide a common focus or unified strategy as personal interests can often take precedence over the business as a whole.

Example: Universities

Person cultures are often common in academia, especially in disciplines where researchers have considerable autonomy. Professors and researchers often prioritise their individual interests such as publishing research, pursuing grants or advancing their careers. While academic departments may have shared goals, the overarching culture may emphasise individual achievement and intellectual pursuits.

Handy`s model helps businesses understand their existing culture and adapt it to the cultural differences of new countries or regions. For example, a power culture might need to adjust its leadership style in a culture that values collaboration and consensus. Businesses can use the model to align their organisational culture with the cultural expectations of a new market, fostering smoother integration and acceptance. By recognising and adapting to different cultural orientations, organisations can enhance their effectiveness, whether operating domestically or internationally.

Whilst limited in its simplicity, with the focus being on the individual company rather than the markets the company wishes to operate, it has stood the test of time and is still a valuable tool for businesses today in giving strategic direction when used in conjunction with other tools to understand international cultures such as Hofstede s Cultural Dimensions.

But does it still get used today? The easier answer is yes. To this day companies still apply Handy s principles to their business practices to ensure that they manage and operate their global teams in an efficient and ultimately successful way. British Airways, the flagship carrier of the United Kingdom with operations all over the world has applied Handy`s model to understand the differing cultures across its global network and their strengths and weaknesses. Shell, the multinational oil and gas company has used Handy`s cultural model to manage its organisational cultures across its global offices including understanding the different cultural dynamics within the company and how they could impact decision-making and performance. lt;/p>It can certainly be argued that the model does not capture every aspect of modern organisational culture dynamics, but its fundamental principles and concepts still provide valuable insights for leaders and managers navigating today`s complex business structures and environments. Therefore, Handy s model of cultures certainly remains today a relevant framework for understanding and managing organisational culture.

Elliott

Teacher of Business

TOPICS:

Handy s Model of Culture

Hofstede s National Cultures

Organisational Design

External Factors

Leadership styles