ACCA Applied Knowledge · Business and Technology · Organisational culture
Zentra Ltd has a rigid, rule-bound culture. A new chief executive wants staff to take more initiative. She changes the performance appraisal system so that staff who propose and implement improvements receive bonuses and promotion. Which approach to changing culture is this?
This is changing reward and appraisal systems to reinforce desired behaviour. By paying bonuses and promoting staff who suggest and implement improvements, the chief executive signals that initiative is valued, which gradually shifts the culture away from rigid rule-following.
- AChanging reward systems to reinforce desired behaviourCorrect
- BClosing the organisation and starting again
- CRelying only on a change of company logo
- DReducing the number of stakeholders
Explanation
Linking rewards and promotion to initiative signals what the organisation values and encourages the desired behaviour. A logo change is superficial, and closing the business or cutting stakeholders is not a method of culture change in this scenario.
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