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ACCA Applied Knowledge · Business and Technology · Organisational culture

Managers at a long-established bank claim that the paradigm at the centre of its cultural web is 'We are cautious, trusted guardians of customers' money'. Which statement about the paradigm is most accurate?

The paradigm is the core set of shared, taken-for-granted assumptions and beliefs, reinforced by the other web elements. This mutual reinforcement makes it resistant to change. It is not a formal mission statement that can be easily rewritten, nor merely the organisation chart.

  1. AIt is the formal mission statement, which is reviewed each year by the board and changed to suit strategy
  2. BIt is the set of core assumptions and beliefs, shaped by the surrounding web elements, which makes cultural change difficultCorrect
  3. CIt is the organisation chart, showing reporting lines and formal authority

Explanation

The paradigm is the taken-for-granted set of assumptions at the web's centre, reinforced by stories, symbols, power structures, organisational structure, control systems and routines and rituals. Because every element reinforces the others, change is hard. The mission statement is only the formal expression, and the organisation chart is just one element, organisational structure.

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