Organisational Culture: Handy, Schein and Hofstede for ACCA BT

Understand Organisational Culture

Key formulas to remember

Handy: power culture

Power culture = central control, often one dominant leader, like a web

Typical of small entrepreneurial firms. Few rules, quick decisions, depends on one person. Can struggle as the firm grows.

Handy: role culture

Role culture = rules, procedures and defined job roles, like a Greek temple

Typical of bureaucracies and large stable organisations. Efficient in stable conditions, slow to change.

Handy: task culture

Task culture = teams formed to solve problems, like a net

Focus on getting the job done. Expertise matters more than position. Common in project and consultancy work.

Handy: person culture

Person culture = organisation exists to serve the individuals in it, like a cluster

Found in groups of professionals such as partnerships or chambers. Hard to control individuals.

Schein's three levels

Artefacts → Espoused values → Basic underlying assumptions

Artefacts are visible (dress, layout, logos). Espoused values are stated beliefs. Assumptions are taken for granted and hardest to change.

Hofstede's dimensions

Power distance; Individualism v collectivism; Masculinity v femininity; Uncertainty avoidance; Long-term v short-term orientation

Describes national culture. Later work added indulgence v restraint. Know the first four or five well; these are the ones usually tested.

How to solve Organisational Culture questions

1. 1Read the question and note which model is named, or which one the clues point to.
2. 2Decide whether the question is about type (Handy), depth (Schein) or national differences (Hofstede).
3. 3Underline clues in the scenario: who decides, are there rules, are teams used, how do staff dress, what do managers say versus do.
4. 4Match each clue to one category of the model. Pick the best fit, not a partial fit.
5. 5Check for a mix. Large organisations often show more than one type; choose the dominant one if asked for one answer.
6. 6For written or multi-task parts, give the label, then the evidence, then the effect on the organisation.
7. 7Check that your answer uses the exact term of the model, for example 'role culture', not 'bureaucratic culture'.

Quickest way: Keyword matching for culture questions

Common mistakes in Organisational Culture

• Mixing up Handy's role culture and power culture.

  Both can be hierarchical, so students focus on the hierarchy.

  Fix: Power culture depends on a person at the centre. Role culture depends on rules and defined roles. Ask whether authority comes from the person or the position.

• Treating Schein's espoused values as the real culture.

  Mission statements are easy to see and quote.

  Fix: Espoused values are what the firm says. The deeper basic assumptions show what people really believe. A gap between the two signals a problem.

• Applying Hofstede to a single company rather than to national culture.

  The word 'culture' makes students use all models the same way.

  Fix: Use Hofstede when the question compares countries or discusses managing across borders. Use Handy or Schein for organisational culture.

• Describing a culture without linking it to the scenario.

  Students memorise definitions and stop there.

  Fix: Quote the evidence from the question, such as 'decisions are made by the founder', then name the culture.

• Saying one culture type is always best.

  Students assume modern, team-based cultures are better.

  Fix: State that the right culture depends on fit with strategy, size, environment and people. Role culture suits stable conditions.

• Confusing high power distance with a high-power culture.

  Both phrases include the word power.

  Fix: Power distance is how far less powerful people accept unequal power. Power culture is a Handy type. They are different models.

Worked examples