Organizational culture refers to the group norms, values, beliefs, and assumptions that are followed within a company. It provides the company with stability and control. The more stable an organization is, the easier it is to understand and achieve its goals. Companies with an Authority culture, in particular, have leaders who are certain of who they are and where they are going. According to the HBR study, 4% of companies make decisions from the top down.
Let's dive into the Authority Company Culture to learn more about it and the benefits of implementing it in your organization.
What exactly is Authority Culture?
Aside from the four main types of organizational culture described in the Competing Values Framework (Adhocracy Culture - Create, Clan Culture - Collaborate, Hierarchy Culture - Control, Market Culture - Compete), there are numerous other fascinating add-in company cultures.
"Authority Culture" is another of the add-on company cultures we're mentioning. This model is based on authority, with workers who prefer to take orders and bosses who prefer to issue commands.
The authority culture exemplifies bravery, firmness, and strength. It is built on rivalry. Workplaces become extremely competitive as everyone strives to stand out, make a name for themselves, and get ahead of the competition.
Leaders who are sure of themselves, in charge, and the glue provide strong leadership and control. People who are more concerned with their own success than with the success of the organization as a whole appreciate authority culture.
Do you have an Authority Culture in your organization?
If your company is very organized and everyone does exactly what they are told, you may be dealing with a traditional organizational culture.
Because the model employs a top-down organizational structure, promotions occur from the bottom up and are based on knowledge, as in the hierarchy model.
Employees may agree to work long hours and be ready to take on assignments at the last minute in order to get ahead in the race and move up the corporate ladder as quickly as possible.
Simply ensure that their desire to make money for themselves does not take precedence over the company's ability to make money, as this may increase the risk of fraud and insider trading. Furthermore, an organization's authority culture frequently leads to rapid growth, opportunities, and success.
A quick note:
Adopting an authority culture entails making firm decisions, defining who is in charge, and ensuring that everyone understands their roles and responsibilities.
This is all done to maintain the hierarchy and discipline. To establish an authority culture, you must hire highly competitive individuals, provide incentives and bonuses to each individual, and reward top performers by promoting them.
Authority Culture Characteristics
If your company is developing an Authority Culture, consider the following:
People in positions of power must be strong and self-assured.
Leaders appreciate it when their followers are courageous, make decisions, and take significant steps.
Strong, self-assured individuals can be found at all levels of the organization.
The company is extremely competitive in its market.
At work, there is also a sense of competition.
The contributions of individuals are significant.
Leaders assist others in achieving their own objectives.
How Does Authority Culture Affects Business?
Companies give managers the authority to do their jobs. It allows them to decide what to do, show orders, and choose how to use resources to achieve the organization's goals. This level of authority is required.
If they lack this authority, their subordinates will not listen to them. Finally, the business cannot function without this permission.
The distribution of power within an organization varies by company. For example, it is dependent on how the organization is structured. Furthermore, the structure is usually related to the company's size.
Consider the example of a small business. Most of the time, only a few people have decision-making authority and power. In a sole proprietorship, for example, the owner makes all decisions.
As the company grows, the organization becomes larger and more complex. As a result, one person cannot make decisions. As a result, a large corporation will give more power to a number of people in lower-level positions. As the company expands, more people will need to be given decision-making authority.
In a large corporation, the levels of authority form a hierarchy, and each group has varying degrees of power. When a company employs a decentralized structure, lower-level positions gain more power. However, if you have a centralized system, the higher level has more energy. The majority of critical decisions are made by top management, leaving little or none to be made at lower levels.
What is the important of the Authority Culture?
There are various levels of authority. It rises as the employee advances in a levelled structure. This type of structure is intended to aid the organization's efficiency. It benefits more than just the company.
However, it is also beneficial to the workers.
Managers in an authority culture can tell their subordinates what to do to help the organization achieve its goals. Then everyone can move in the same direction.
The hierarchy also demonstrates how associates can advance in their careers and what positions they can hold with their current position. Each job requires a unique set of skills, and a high level necessitates a higher level.
Creating a power structure allows the company to grow by hiring people who are good at managing.
The hierarchy is also a method for managers to keep their promises. When someone becomes a manager, he must demonstrate that he is competent in his field. If he does not, he will be replaced.
What Are the Different Types of Authority in a Business?
Authorities are classified into 4 types:
Line of command
Line of command
It immediately moves up the chain of command and provides legitimacy. A manager's treatment of his employees is one example. He has direct control over them and the authority to issue orders and delegate tasks to his subordinates. An organization requires a leader who can motivate people to achieve the goals and objectives that have been set for them.
It does not grant anyone the authority to rule, but it does provide advice and assistance to other departments. The legal department, for example, has its own authority. The legal manager advises other departments but cannot compel them to do the right thing. It is also common in other departments such as human resources, procurement, and technology, where it supports value chain activities.
It enables someone to issue orders to individuals outside of his department. For example, a project may be assigned to a manager. Assume he is currently employed in the research and development department. The company allows him to select the team he believes will do the best job. So, for example, he asked the marketing department to assist him in understanding what customers want. He also enlisted the help of people from the finance department to keep an eye on the project. Another excellent example is the staff in the finance department. They may also be able to request documents to assist them in preparing financial statements.
Huawei as an Example of a Culture of Authority
Consider Huawei as an example. The company's authoritarian work style, dubbed "the Wolf Culture," became well-known around the world.
This workplace is defined by high expectations and pressure from upper management. As previously stated, Huawei's work culture is a major reason for the company's rise to the status of global tech behemoth.
Employees are well compensated for the long, hard hours they put in and the strict rules they must follow. The company is doing well and expanding. So it's a win-win situation for everyone?
Not exactly. In some workplaces, the "Type A" culture is similar to the "hierarchy culture" in that it operates from the top down. This method of operation does not appeal to all employees. Huawei's working style got the company into a lot of trouble. Selling your soul to the devil has never worked out well.
Accepting a culture of authority necessitates decisive action, the establishment of a clear chain of command, and the communication of expectations to all team members.
All of this is done to keep order and discipline.
Establishing a culture of authority requires hiring highly competitive individuals, providing each with incentives and bonuses, and rewarding the best performers with promotions.