ACCA Applied Knowledge · Business and Technology · Organisational culture
Deal and Kennedy classified organisational cultures according to two market-related factors. Which pair of factors did they use?
Deal and Kennedy used the degree of risk the organisation takes and the speed of feedback on decisions and results. Combining high or low risk with fast or slow feedback produces their four culture types. Hofstede's dimensions are a different model.
- ADegree of risk and speed of feedbackCorrect
- BPower distance and uncertainty avoidance
- CFormalisation and centralisation
Explanation
Deal and Kennedy's four cultures (tough-guy macho, work hard/play hard, bet-your-company and process) are defined by the degree of risk in the firm's activities and the speed at which employees get feedback on their decisions. Power distance and uncertainty avoidance come from Hofstede, and formalisation and centralisation relate to structure, not Deal and Kennedy.
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