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?
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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
Here is another organizational model proposed by the fertile mind of Charles Handy. For the others, take a look at our videos on:
• The Gods of Management
• The Shamrock Organization, and
• 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.
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)
– 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
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