The culture of an organisation consists of the attitudes, norms and values held by the people within it. It affects the way that people behave and the way that the ‘leaders’ and the ‘led’ relate to each other.

Handy identified four different cultures. Each can exist within a different part of the same organisation.

Power culture. There is one major source of power within the organisation and power and influence spreads out through the organisation from this power source in the centre. A power culture is often found in a small organisation that is owned and managed by an active and dynamic individual.

Role culture. Individuals see themselves as performing a role, often according to a job description. They are job-holders carrying out a designated function. The role culture is associated with bureaucracy and most large organisations. Examples are government departments.

Task culture. Individuals describe their work in terms of what they do rather than the function they perform. The focus is on the end-result rather than the method of working. The task culture is associated with project teams in business organisations. A task culture might also be found in some sports teams, such as the crew for a round-the-world sailing yacht.

Person culture. The organisation is built around an individual and the individual’s needs. Very rare in practice. An example might be the entourage of a playboy prince or a film star.