ACCA Applied Knowledge · Business and Technology · Organisational culture
Deal and Kennedy classified organisational cultures using two market-related factors. Which pair of factors did they use?
Deal and Kennedy used the degree of risk in the organisation's activities and the speed of feedback on decisions. Combining high or low risk with fast or slow feedback produces their four cultures. Power distribution and formalisation belong to other models, so they are not the basis here.
- ADegree of risk in the organisation's activities and speed of feedback on decisionsCorrect
- BPower distribution and degree of formalisation
- CTask focus and people focus
- DSize of the organisation and geographic spread
Explanation
Deal and Kennedy's four cultures come from two variables: the level of risk attached to the firm's activities and how quickly the firm receives feedback on whether decisions or strategies were successful. Power and formalisation relate to Handy and Harrison style models, so they are not the basis of this model.
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