Association of Chartered Certified Accountants (ACCA) Certification Practice Test

How did Handy define corporate culture?

1. The formal structure within an organization

2. The symbolic interactions among employees

3. The way we do things round here

4. The policies set by upper management

The correct answer is: The way we do things round here

Handy defined corporate culture as "the way we do things round here," highlighting the informal, often unspoken norms and values that characterize an organization. This definition emphasizes the day-to-day behaviors, attitudes, and practices that shape the work environment and influence how employees interact with one another and carry out their tasks. Understanding corporate culture in this manner is important because it underscores the significance of shared beliefs and social dynamics within a company, which can directly impact employee morale, productivity, and overall organizational effectiveness. This perspective also helps to distinguish corporate culture from formal structures or policies, which may not adequately capture the lived experiences of employees within the organization.