Skip to content

ACCA Applied Knowledge · Business and Technology · Organisational culture

Which statement best describes the relationship between organisational culture and performance?

A culture supports performance when it fits the organisation's strategy and environment. A strong culture is not automatically beneficial, because it may resist needed change, and culture does influence behaviour at all organisation sizes, so absolute statements about culture and performance are wrong.

  1. AA strong culture always leads to superior performance regardless of the environment
  2. BCulture has no effect on performance because only structure and strategy matter
  3. CA culture supports performance when it fits the organisation's strategy and environmentCorrect
  4. DCulture only affects performance in organisations with fewer than fifty employees

Explanation

Culture influences performance through how it shapes behaviour, but benefit depends on fit with strategy and environment. A strong culture can even harm performance if it resists necessary change. The claims of always or never affecting performance are therefore incorrect.

Did you get it right without looking?

One question tells you little. A timed set on Organisational culture shows your real accuracy, how long you take and where you lose marks.

Practise Organisational cultureFree diagnostic mock

More Organisational culture questions