Lesson notes, exercises, downloads, and recommended reading are below the video. On mobile, the video will rescale when you play it.


Charles Handy’s Federal Organization Model

Charles Handy’s Federal Organization model is highly centralized – but highly decentralizing. What on Earth can we make of this apparent contradiction?

Watching this video is worth 1 Management Courses CPD Point*.
(See below for more details)

The Nature of Organizations
=======================
This video is part of course module number 6.1.2
Program 6: Managing within Organizations
Course 1: The Nature of Organizations
Section 2: Organizational Models

Other videos in this section include:
🎬 Edgar Schein’s Two Organizational Cultures – https://youtu.be/9C64CXJw83E
🎬 Henry Mintzberg’s 4 plus 2 Organizational Types – https://youtu.be/JmvYcskjh3E
🎬 Charles Handy’s Gods of Management – https://youtu.be/yClxu7dzmB4
🎬 Charles Handy’s Shamrock Organization – https://youtu.be/dGGKT0Mr_HA
🎬 Charles Handy’s Triple-I Company – https://youtu.be/gFRXiMkIg6k
🎬 The Matrix Organization Model – https://youtu.be/hJ9wbFgmtKM
🎬 Peter Senge’s Learning Organization – https://youtu.be/k1k2h1l2VO0
🎬 Adhocracy – https://youtu.be/7QKm0Y3_Hr0
🎬 The Agile Organization – https://youtu.be/67NVUeFQMy4
🎬 Brian Robertson’s Holacracy – https://youtu.be/hz3khhOLT5E
🎬 Virtual Organizations – https://youtu.be/Hsovj2jPNPA

LESSON NOTES
============
Here is another organizational model proposed by the fertile mind of Charles Handy. For the others, take a look at our videos on:
β€’ The Gods of Management
β€’ The Shamrock Organization, and
β€’ The Triple-I company
This one is highly centralized – but highly decentralizing. What on Earth can we make of this apparent contradiction?

Berkshire Hathaway seems to me to be the epitome of Handy’s Federal Organisation. Here, there is a tiny core business, managing a large number of highly independent businesses, all of whom have complete autonomy to manage their affairs, and succeed on their own terms.
The central function has a very limited role, co-ordinate, influence, and advise. Often, as at Berkshire Hathaway, that co-ordination has a very light touch. It focuses on the broadest long-term strategy. All operational and short to medium term matters are fully devolved to the satellite businesses or operational units.

When you see the success that Warren Buffett and Charlie Munger have created, you have to wonder why other large federal multinationals spend so much effort trying to control their subsidiaries, impose processes and functional verticals upon them, and generally over-manage the local talent.

RECOMMENDED EXERCISE
======================
1. Assess the pros and cons of a highly federal organizational structure (3 MC CPD Points)
2. To what extent is your organization a federal organization? How would it improve and what would it lose, if it were to move further in the direction of a fully-federal structure? (3 MC CPD Points)

DOWNLOADS
===========
Free Resources
– CPD Tools – https://gum.co/MC-CPD
Paid resources
– Management Courses Onboarding Kit – https://gum.co/MC-ObK ($3)

RECOMMENDED READING
=====================
– Understanding Organizations https://geni.us/oB774Do
– Images of Organization https://geni.us/hrOemEs
– Inside Organizations: 21 Ideas for Managers https://geni.us/YwwL
– Gods of Management: The Four Cultures of Leadership https://geni.us/bpPeC5

Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-work-kit (the links are affiliated)

Management Courses Continuing Professional Development (CPD) Points
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You can record your Management Courses CPD points on our free, downloadable CPD record log.
Download it at: https://gum.co/MC-CPD

Each video has two levels of MC CPD points. For this video:
– If you simply watched the video, record 1 MC CPD point
– If you also carried out all of the recommended exercises, score a total of 7 MC CPD points
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#Management #ManagementCourses #FederalOrganization

source

Kim Cameron: Positive Organizational Scholarship
Charles Handy: Philosopher of Organizations
Edgar Schein: The Master of Organizational Culture
Harold Geneen: Data-driven Charismatic Organization
Chester Barnard: Organizations as Networks of People
Max Weber: The Father of Organizational Theory
How we Work: Geert Hofstede’s 6 Cross-Organization Cultural Dimensions
National Culture within an Organization: Geert Hofstede’s 6 Cultural Dimensions
Quinn and Cameron: Competing Values Model of Organizational Culture
Edgar Schein’s 3 Levels of Organizational Culture
Cultural Web: Johnson & Scholes on Where Culture Originates
Introduction to Organizational Culture
Empowerment: The Organization Giving up its Power
French and Raven: Social Power Bases in Organizations
Power in Organizations: The Power of Governance
Robin Fincham: Three Levels of Organizational Power
Amitai Etzioni: How Organizations Secure Compliance
Organizational Power: What is Power?
Virtual Organizations
Brian Robertson’s Holacracy Organizational Model
The Agile Organization
Adhocracy Organizational Model
Peter Senge’s Learning Organization
The Matrix Organization Model
Charles Handy’s Triple-I Company
Charles Handy’s Shamrock Organization
Charles Handy’s Gods of Management
Henry Mintzberg’s 4 plus 2 Organizational Types
Edgar Schein’s Two Organizational Cultures
Why do we need Organizations? Structure vs Agility
The Features of Organizations: What an Organization Needs
Organizations as Processes: Understanding an Organization as a Set of Processes
Organizations as Structures: Understanding an Organization as a Structure
Morgan’s 8 Organizational Metaphors: An Organization is Like a…
What is an Organization? – the Nature of Organizations

Mike Clayton

About Mike Clayton 

Dr Mike Clayton is a (former) Project Manager and now a management educator. Having trained thousands of people at live workshops, seminars, and conferences, he now delivers training mainly via video. He has 14 books with international publishers and runs two successful YouTube channels. He is also the founder of OnlinePMCourses.com

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