How do 'organisational culture' and 'company culture' differ?

Prepare for the Edexcel AS/A‑Level Business Theme 3 Exam. Engage with multiple choice questions and detailed explanations. Enhance your understanding and get exam ready with our comprehensive resources!

The distinction between 'organisational culture' and 'company culture' is accurately captured in terms of their focus and scope. Organisational culture generally encompasses the broader shared values, beliefs, and behaviors that shape how members of the entire organization interact and work together. This includes the overarching principles that guide decision-making and influence the organization's identity.

On the other hand, company culture refers specifically to the unique environment and ethos within a particular company, often influenced by its leadership, policies, and work practices. While it is informed by the organisational culture, company culture may vary between departments or teams within the same larger organization, reflecting more localized practices and attitudes.

Therefore, the correct answer emphasizes that while there is overlap between the two concepts, organisational culture is a broader term focused on shared values across the entire institution, while company culture delves into the specific environment and practices of a particular company or its divisions.

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