Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which factors influence an organization’s culture?

1. Workforce skills and training

2. Size, Technology, Diversity, Age, History, Ownership, Religion

3. Location and global presence

4. Market trends and competition

The correct answer is: Size, Technology, Diversity, Age, History, Ownership, Religion

The correct answer highlights that an organization’s culture is influenced by a range of interconnected factors, which includes size, technology, diversity, age, history, ownership, and religion. Firstly, size plays a crucial role because larger organizations often develop more complex cultures with differentiated subcultures, while smaller organizations may have a more unified culture. Technology introduces specific values and behaviors, shaping how employees interact and perform their work. In a technologically advanced setting, there may be an emphasis on innovation and agility. Diversity reflects the varied backgrounds and perspectives of employees, fostering an inclusive culture that values different viewpoints and experiences which can greatly enhance creativity and problem-solving. The age of the organization contributes to its culture as newer organizations may embrace modern practices, while older ones may have established traditions that shape their workforce's behavior. Historical context, including past successes and failures, influences the collective mindset regarding risk, change, and operations within the organization. Ownership also has an impact, as employee-owned firms may have a culture rooted in collective interest, while publicly traded companies might focus more on shareholder value. Lastly, religion can shape cultural norms and values in a workplace, impacting policies, interpersonal relations, and ethical guidelines. In contrast, while workforce skills and training,