ACCA Applied Knowledge · Business and Technology · Organisational culture
Which of the following is generally regarded as the MOST powerful influence on the culture of a newly established organisation?
The founder's values and beliefs are the most powerful influence on a new organisation's culture, because employees copy the founder's behaviour and priorities, which become the shared norms. Economic or asset-related factors affect results but do not directly form shared values.
- AThe values and beliefs of its founderCorrect
- BThe prevailing exchange rate
- CThe age of its non-current assets
- DThe number of its competitors
Explanation
In a young organisation the founder's beliefs, preferences and behaviour set the standards that others copy, so they shape culture more than other factors. Exchange rates, asset age and competitor numbers affect performance or strategy but do not directly create shared values and norms.
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