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ACCA Applied Knowledge · Business and Technology · Organisational culture

Two companies with contrasting cultures merge. Employees of the acquired company continue to follow their old procedures and resist the parent's approach. Which statement best explains why changing culture is difficult here?

Culture is embedded in shared, often unwritten assumptions, habits and norms held by people, so it changes slowly and meets resistance. Updating formal policies or the legal structure does not by itself alter these deeper beliefs, which explains the acquired employees' continued behaviour.

  1. ACulture is formed only by formal policies, which have not yet been updated
  2. BCulture is embedded in shared, often unwritten assumptions and habits that people hold, so it changes slowly and meets resistanceCorrect
  3. CCulture is determined solely by the legal structure of the merged group

Explanation

Schein-type thinking shows culture rests on deep shared assumptions and informal norms, not just written policy. These are slow to change and employees naturally resist. Policies and legal structure do not by themselves determine culture.

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