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Syllabus B: Organisational structure, culture, governance and sustainabilitySyllabus BOrganizational Structure
ACCA · Question 06 · Syllabus B: Organisational structure, culture, governance and sustainability
SteelForge is a heavy manufacturing company that recently reorganized. An engineer at SteelForge now reports to the Head of Engineering for technical standards, but also reports to the Manager of the 'Bridge Construction Project' for daily task assignments.
Which organizational structure has SteelForge adopted?
SteelForge is a heavy manufacturing company that recently reorganized. An engineer at SteelForge now reports to the Head of Engineering for technical standards, but also reports to the Manager of the 'Bridge Construction Project' for daily task assignments.
Which organizational structure has SteelForge adopted?
Answer options:
A.
Functional structure
B.
Divisional structure
C.
Matrix structure
D.
Entrepreneurial structure
How to approach this question
Look for the key indicator of dual reporting lines (reporting to two different managers simultaneously).
Full Answer
C.Matrix structure✓ Correct
A matrix structure combines functional and product/project departmentalization. Employees have dual reporting relationships - generally to a functional manager (for skills/standards) and a product/project manager (for daily deliverables).
Common mistakes
Confusing matrix with divisional. Divisional still usually has a single chain of command within the division.
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