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ACCA Applied Knowledge · Business and Technology · Organisational culture

A manufacturer plans to move from a rigid, rules-based culture to one that encourages innovation. Which action is most likely to help change the culture successfully?

Senior managers visibly modelling the new behaviours and aligning reward systems with them is most likely to succeed. Culture changes when leaders act out the values and incentives reinforce them, whereas memos or cosmetic changes leave underlying assumptions and behaviour unchanged.

  1. AAnnouncing the new values in a memo and leaving staff to adapt
  2. BSenior managers visibly modelling the new behaviours and aligning reward systems with themCorrect
  3. CReplacing the logo and office layout only

Explanation

Culture changes when behaviours, role models and rewards reinforce the new values. A memo alone, or cosmetic changes such as a new logo, do not alter underlying assumptions and behaviour.

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