2.2.1 Power Culture . Handy (1993) Alleges That A Power

2.2.1 Power culture Handy (1993) alleges that a power culture depends on a central power source which consists of only a few people. This power centre controls all operations, but this control only functions up to a certain organization size. Beyond this point, the control of the centre collapses. Harrison (1972) examines further that a power culture is characterized by a highly competitive mindset. Therefore, this culture avoids being subject to any regulation and people within the organization try to retain their power at any cost. However, this characteristic enables them to thrive in a highly competitive environment. Another aspect of this culture type is its pronounced hierarchy. Information must pass through many layers before a†¦show more content†¦This goal is the most important aspect and nothing shall prohibit its attainment. Indeed, the downside of this attitude is that employees do not hesitate to break rules (Harrison, 1972). In contrast to the last two cultures, authority is only accepted when it contributes to the goal’s achievement. That implies that the culture is decentralized and therefore it can adapt to external changes rapidly. That is one of its key strengths (Harrison, 1972). However, this also means that this culture has difficulties in producing economies of scale (Handy, 1993). Furthermore, this type rewards personal commitment (Handy, 1993), but once a person’s knowledge becomes obsolete, they are expected to leave (Harrison, 1972). Therefore, while providing development opportunities, the individuals’ economic security is rather low. Due to its emphasis on agility (Handy, 1993), this culture thrives in fast-paced environments. Research teams (Harrison, 1972) or advertising agencies (Handy, 1993) are likely to exhibit such a culture. Matrix culture This type is a merger of role and task culture. Harrison (1972) argues that the internal conflict between the need for swift reaction to external changes (task) and internal integration (role) could lead to a matrix culture. 2.2.4 Person culture It was distinctive for the three preceding types that the people serve the organization but within a person culture the organization serves the people.