Organisation Culture

When Looking at 'Organisation Culture', the theory Organisational Iceberg by French and Bell,1990 is the first that comes to mind. The theory suggests that the organisations of the business are split into two categories. Informal and Formal. The Informal organisations focus on  Values, attitudes and beliefs, leadership styles and norms of behavior as apposed to the formal organisational style which focuses on the goals, strategy and structure of a business. It is clear from looking at the ‘Visual’ aspects of culture in an organisation, that these attitudes reflect atmosphere of the business. When analysing this, i thought it would be best to look at a place that has a lot of character and atmosphere. ‘Mi-Shake’ in the Eden Centre in High Wycombe is a milkshake shop which provides hundreds of different types of milkshakes and brings a highly unique, interesting approach to selling milkshakes. The shop is set out to draw and attract customers with its bright green signs and animated pictures of cows as the display window. The language used within the shop is simple and informative, providing customers with the information they need in order to decide if they want to try the products being sold. Only using their own ice cream and mixing it with product brands the customers know and love such as chocolate bars and biscuits, the customer quickly can decide what type of milkshake they want and how it will be made for them. “The 4 step process to an excellent taste experience” is a step by step guide the creators have invented to explain how to create your ideal milkshake. The fun and easy guide attract and draws customers in as they are allowed to experience and help create and design their own milkshake instead of picking from the standard basics. The atmosphere within the shop is very relaxed and fun and does not feel like a business environment, even when there are many people in the shop all looking to buy a milkshake, the shop still withholds its fun atmosphere. Part of this atmosphere is gained by the staff’s uniform, the casual look adds to the bright colours of the shop and the general pace of work and allows the shop to be an inviting and very exciting place to go. The reputation the shop has created for itself by using the simple techniques it has, has created a very well thought of shop. The expectations of the customer when entering the shop will be met due to the management style that has been used within the shop. The friendly upbeat atmosphere automatically communicates a memory in the customers mind and will then force them to be more willing to come back and gain the same experience again.

Handy created a few key terms which can be applied to culture in organisations. The first we look at is, ‘Power Culture’. This, in simple terms is when an organisation, no matter how big or small, uses a few powerful figures as the centre of the organisation. These people only rely on each other to create the ideas, rules and the systems that they then pass on out of the main circle, on to the people who are below them. This creates fast decisions and the communication of the organisation is strictly sent from those above in charge. An example of this type of culture would be seen from the Army. There is no freedom of thought and are directed to do exactly what you are told to do.

Looking at ‘Role Culture’, we can see that it is very much based on the typical bureaucratic system. The hierarchy and chain of command is very much central in this type of organisational culture. The structure of the ‘Role Culture’ idea, believes that the orders come directly from the person in charge and they filter it down to the lower levels which fundamentally hold up the business. People who are employed within the business work to their job description and no more, the power within the business is based on hierarchy. This type of culture is better used in a business that is not subject to change and which rules and regulations are followed quite strictly. An example of this type of culture would be the ‘Indian State Railway’. It employees over 1.5 million employees.

Moving on and looking at ‘Task Culture’, it can be seen that this differs greatly from the first two we have seen. ‘Task Culture’ looks predominantly at team working and letting the different areas of the organisation work closely together. The project based company would look for the task to be the key point rather than the people and rules that are tied to it. The freedom and flexibility that comes with ‘Task Culture’ ensures that there is a relaxed atmosphere where ideas are free to float around and new developments can occur naturally.  An example of this type of culture can be seen from a managing consultancy company such as KPMG, McKinsey or Ernst & Young.

Finally, we look at ‘Person culture’. This culture is not entirely appropriate for a business due to its extreme lack of hierarchy. This type of culture is based on the individuals being the central part of the organisation and it existing to meet the interests of those within it. An example of which would be barristers or architects; People who share the exact same degree of professional standards as others they work with, therefore there can not be any hierarchy. They work together in order to achieve what has to be done. An example of this where the people cantered culture crosses over into the corporate world would be where the firm takes the form of a partnership. A large and very successful example of this would be the investment bank ‘Goldman Sacks’. The company made over $13 bn in 2009 alone.

Several problems may occur when trying to classify culture and force it into one of the categories above. For example, the type of business you decide to depict and place into a category, may hold one or two different structures within the organisation and could be placed over two of the above categories. Also, not every business is run exactly how the four above categories created by Handy.

To summarise, my findings have shown that although Handy’s four definitions of Culture are useful, not all businesses can be fit into a category. And each business and organisation needs its own structure put in place in order for the company to work well and grown in which ever way it can.


Referencing :


Hofstede, 1984


Organisational Iceberg by French and Bell,1990


L. J. Millins Management & Organisational Behaviour 9th Edition.


 Handy 1993 Four Types Of Culture


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