Principles of Management (MGT 503)

Semester: Fall 2019 Graded Activity 1

Due Date: Nov 21, 2019 Total Marks: 20
Assignment:
Handy proposed a model of organizational culture according to which organizational culture is
categorized into four different dimensions; Role culture, Power culture, People culture and Task
culture. In Role culture more emphasis is given to the organizational hierarchies. Power culture
revolves around a single entity. Individuals possess the supreme worth in Person culture. Task culture
is more task-based and only focuses on the completion of tasks. For more detail check the following
model of Handy’s Culture:

Role Culture: Task Culture:

Such organizations are based on the assumptions
that people are rational; and that roles can be
defined and discharged with clearly defined
procedures. They display stability, certainty and
have great strength in situations marked by
continuity; they often display weakness in adapting
to, or generating, change.
This is found in organizations where management is
concerned with solving a series of problems. The
structure is represented by a net, resources being drawn
from all parts of the organization to meet the needs of
current problems. Working parties, sub-committees, task
forces and study groups are formed on an ad-hoc basis to
deal with problems. This type of culture is seen to
advantage when flexibility is required.

Power Culture: Person Culture:

Revolves around the strong leader who enjoys and
uses power, and is graphically represented by a
spider’s web. All lines of communication lead,
formally or informally, to the leader. Such
organizations display strength in speed of design
making, their potential weakness lying in the caliber
of the “one man bands” running them.
Organizations characterized by these cultures are those
where the organization exists to serve the individual and
where individuals are not servants of the organization.
They consist of groups of professionals, for example
doctors or lawyers, with no “boss”. Co-ordination may
be provided by a committee of peers. Such structures are
becoming more common as more conventional
organizations increasingly contract out work to
professionals and specialists whose services are used
only as and when required.

Recall the McGregor’s Theory X and Theory Y and identify which theory (theory X or theory Y)
facilitates each of the culture types (role, power, people and task culture) proposed by Handy. Brief
explanation must be provided to support your answer.
Culture type McGregor’s theory Explanation
(theory X / theory Y)
1. Role culture McGregor’s theory of X McGregor’s theory of X
explains that the people are
no motivated to do the job.
So, in role culture, their
duties are already assigned
and there is no major
change. So, the leader is
authotarian style of
management.
 2. Power culture McGregor’s theory of Y McGregor’s theory of Y
explains people are
inherently happy to work,
they want to exert
themselves and they are
motivated to pursue
objectives. So, the leader is
participative style of
management.
3. People culture McGregor’s theory of X McGregor’s theory of X
explains that the people are
lazy and no motivated to do
the job. So, in person
culture, individuals think
about their own self but not
for the organization. The
organization in such a
culture takes a back seat and
eventually
suffers. Employees just
come to the office for the
sake of money and never get
attached to it. They are
seldom loyal towards the
management and never
decide in favour of the
organization.
4. Task culture McGregor’s theory of Y McGregor’s theory of Y
explains people are
motivated by team members
as task culture is a team
culture and In such a culture,
every team member has to
contribute equally and
accomplish tasks in the most
innovative way.
Note: Solution must be provided in the above format; else marks will be deducted.