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ACCA Applied Knowledge · Business and Technology · Organisational culture

Zeta Logistics operates in a stable market and has a tall hierarchy, detailed procedures and clearly defined job descriptions. Its managers prize predictability and efficiency. Which of Handy's cultures does Zeta best reflect, and what is the main risk when its market becomes volatile?

Zeta shows a role culture, with formal hierarchy, procedures and defined jobs. This suits a stable market, but when the market becomes volatile the reliance on rules and formal channels makes the organisation slow to respond and adapt to change.

  1. ARole culture; slow response to changeCorrect
  2. BTask culture; loss of control over projects
  3. CPower culture; dependence on one leader
  4. DPerson culture; conflict between individual specialists

Explanation

Detailed procedures, defined roles and a hierarchy indicate a role culture, shown as a Greek temple. It works well in stable conditions but adapts slowly because rules and formal channels delay response. Task culture would show flexible project teams, which the scenario does not describe.

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