Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which cultural type is characterized by a few formal rules and significant influence from a founder?

1. Task culture

2. Power culture

3. Role culture

4. Person culture

The correct answer is: Power culture

The cultural type characterized by a few formal rules and significant influence from a founder is the power culture. This type of organizational culture typically revolves around a central figure or a small group of individuals who hold authority and influence over decision-making processes without the need for extensive formal structures or rules. In a power culture, leaders often have a strong vision and their personal beliefs significantly shape the organization’s direction. This often leads to a more agile and flexible environment as followers tend to focus on the vision and directives of the dominant leader or leaders. Since the organizational structure is less hierarchical than in role culture, employees may experience fewer formalities and more direct involvement in pursuing goals aligned with the founder’s vision. Task culture can be characterized by teams being formed for specific projects with clear objectives but does not necessarily revolve around a single individual’s influence. Similarly, role culture is more bureaucratic and structured with established roles and responsibilities, hence relying heavily on formal rules and procedures. Person culture is more about the individuals where the organization exists primarily to serve the interests of its members, which also does not reflect the significant influence of a founder in a structured environment.