Medium2 marksMultiple Choice
Syllabus B: Organisational structure, culture, governanceSyllabus BHandy's Cultural TypologiesOrganizational Culture

ACCA · Question 02 · Syllabus B: Organisational structure, culture, governance

[Section A] 'NovaTech', a rapidly growing AI startup, was initially built around its charismatic founder who made all critical decisions. As the company expanded to 500 employees, it restructured into specialized departments (e.g., R&D, Marketing, Finance) with strict job descriptions and hierarchical reporting lines. According to Charles Handy's cultural typologies, what cultural shift has NovaTech experienced?

Answer options:

A.

From Task culture to Person culture

B.

From Power culture to Role culture

C.

From Role culture to Task culture

D.

From Person culture to Power culture

How to approach this question

Identify the initial state (founder-centric) and the final state (bureaucratic/departmentalized) using Handy's Greek god analogies.

Full Answer

B.From Power culture to Role culture✓ Correct
Handy defines four cultures: Power (web-like, central figure), Role (bureaucratic, hierarchical, job descriptions), Task (matrix, project-focused), and Person (individual-focused). NovaTech moved from a central founder (Power) to strict departments and hierarchies (Role).

Common mistakes

Confusing Role culture with Task culture. Role culture is about bureaucracy and job titles, while Task culture is about cross-functional project teams.

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