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Syllabus B: Organisational structure, culture, governance and sustainabilitySyllabus BStructureCultureGovernance

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

Scenario: AgriFoods is an agricultural cooperative. Employees report to both a functional manager and a regional project manager. The culture is highly focused on rules, procedures, and strict job descriptions. The board recently separated the roles of Chairman and CEO to improve governance, and their CSR policy is strictly limited to fulfilling legal obligations.

Identify the correct classifications for the following four tasks:
Task 1: Organizational structure type
Task 2: Handy's cultural type
Task 3: Corporate governance principle applied
Task 4: Carroll's CSR pyramid level

Which of the following combinations is correct?

Answer options:

A.

1-Matrix, 2-Role, 3-Division of responsibilities, 4-Legal

B.

1-Divisional, 2-Task, 3-Board independence, 4-Economic

C.

1-Matrix, 2-Power, 3-Division of responsibilities, 4-Ethical

D.

1-Functional, 2-Role, 3-Accountability, 4-Philanthropic

How to approach this question

Analyze each sentence. Dual reporting = Matrix. Rules = Role. Splitting top jobs = Division of responsibilities. Only doing what the law says = Legal CSR.

Full Answer

A.1-Matrix, 2-Role, 3-Division of responsibilities, 4-Legal✓ Correct
Task 1: Dual reporting lines define a Matrix structure. Task 2: A focus on rules and job descriptions defines a Role culture. Task 3: Separating the Chairman and CEO ensures a Division of responsibilities at the head of the company. Task 4: Limiting CSR to legal compliance places them at the Legal level of Carroll's pyramid.

Common mistakes

Confusing Role culture with Task culture. Task is about getting the job done regardless of rules; Role is strictly about the rules.
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