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Power culture

A power culture, in Handy’s typology, concentrates influence around a central individual or small group. Decisions can be rapid and personal relationships may matter more than extensive formal procedures. The arrangement can become dependent on the central figure and may struggle as complexity grows. Handy’s club or Zeus label refers to this pattern of central influence, not simply to the shared customs of any social club.

Worked example

A small business owner personally approves important purchases and resolves most staff issues. Employees seek the owner’s judgement rather than rely on detailed procedures. Growth exposes the risk that decisions stall whenever the owner is absent.

Common mistake

Power culture is not identical to every use of legitimate authority, and it does not mean that formal rules or capable staff are absent.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA BT Direct September 2026–June 2027
ACCA SBL Supporting September 2026–June 2027
FIA FBT Direct September 2026–June 2027