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Syllabus B: Organisational structure, culture, governance and sustainabilitySection BSyllabus BMTQStructure

ACCA · Question 48 · Syllabus B: Organisational structure, culture, governance and sustainability

SCENARIO: 'Global Health NGO' is restructuring. They currently have separate offices for Europe, Asia, and Africa. They want to change to a system where teams are formed dynamically based on specific health crises (e.g., a 'Malaria Project Team'). This will shift their culture from being highly bureaucratic to focusing purely on getting the job done. They must also ensure their board complies with charity governance codes.

Identify the correct classifications for:

  1. Current organizational structure.
  2. Proposed organizational structure.
  3. The new Handy's cultural type.
  4. The primary governance duty of the NGO's board.

Which option represents the correct combination?

Answer options:

A.

1-Functional, 2-Geographical, 3-Role culture, 4-Maximizing shareholder wealth

B.

1-Geographical/Divisional, 2-Matrix/Project, 3-Task culture, 4-Acting in the best interest of the charity's beneficiaries

C.

1-Geographical/Divisional, 2-Functional, 3-Power culture, 4-Acting in the best interest of the charity's beneficiaries

D.

1-Matrix/Project, 2-Geographical/Divisional, 3-Task culture, 4-Maximizing shareholder wealth

How to approach this question

Analyze the 'before' and 'after' states. Before: Continents (Geographic). After: Projects (Matrix/Task). NGOs serve beneficiaries, not shareholders.

Full Answer

B.1-Geographical/Divisional, 2-Matrix/Project, 3-Task culture, 4-Acting in the best interest of the charity's beneficiaries✓ Correct
1. Organizing by continent is a Geographical Divisional structure. 2. Organizing by specific crises is a Project/Matrix structure. 3. A focus on getting the job done via teams is Handy's Task culture. 4. In corporate governance for charities/NGOs, the board's fiduciary duty is to the beneficiaries and the charity's mission, not to shareholders.

Common mistakes

Applying standard corporate governance (maximizing shareholder wealth) to an NGO.
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