- 12 Marks
Question
Charles Handy identified four distinct categories of corporate culture (cultural stereotypes) that can exist within an organization. Since its formation, BOGML has exhibited all four categories of corporate culture during different phases of its growth.
Required:
Identify and explain the specific and appropriate category of corporate culture applicable, and discuss its impact on the company for each of the following phases of growth when Dr. Ayimadu Baffour:
i) Created the functional departments.
ii) Stated that BOGML is built around him and without him the company will not exist.
iii) Insisted on retaining all authority for decision-making.
iv) Emphasized getting work done through teamwork.
Answer
Charles Handy Cultural Types
| Phase of Growth | Cultural Type | Explanation | Impact on BOGML |
|---|---|---|---|
| i) Created the functional departments | Role Culture | A role culture exists in a bureaucracy where responsibilities are clearly defined based on an organizational structure. Employees derive power from their job role rather than personal influence. | – Enables functional heads to effectively manage teams, reducing MD’s workload. – Allows specialization, but may lead to rigid bureaucracy. – Joint handling of Internal Audit and Risk by Finance & Operations weakens checks & balances. |
| ii) Stated that BOGML is built around him and without him the company will not exist | Person Culture (Existential Culture) | In a person culture, the individual is more important than the organization, and the company exists to serve the individual’s interests. | – Demotivates employees as they feel undervalued. – Creates succession planning issues. – Limits long-term sustainability. |
| iii) Insisted on retaining all authority for decision-making | Power Culture | A power culture is characterized by centralized decision-making, where one person holds control over most business activities. | – Allows fast decision-making, which is crucial in a dynamic industry. – Limits employee autonomy and creativity. – Can result in frustration and high employee turnover. |
| iv) Emphasized getting work done through teamwork | Task Culture | A task culture focuses on problem-solving and teamwork, where authority is determined by expertise rather than hierarchy. | – Encourages innovation and collaboration. – Can enhance problem-solving capabilities. – May clash with existing power structures, leading to resistance. |
- Tags: Business Growth, Charles Handy, Decision Making, Leadership, Organizational Culture
- Level: Level 3
- Topic: Competitive Advantage, Internal analysis
- Series: Nov 2024
- Uploader: Salamat Hamid
