ExpertEasy2 marksMultiple Choice
Organisational structure, culture, governance and sustainabilitySection ASyllabus BOrganizational Structure
ACCA · Question 07 · Organisational structure, culture, governance and sustainability
GeoThermal Dynamics operates across 15 countries. An engineer working in the Iceland facility reports directly to the 'Head of European Operations' for regional administrative matters, but also reports to the 'Global Chief of Drilling Technology' for technical standards. What type of organizational structure is GeoThermal Dynamics using?
GeoThermal Dynamics operates across 15 countries. An engineer working in the Iceland facility reports directly to the 'Head of European Operations' for regional administrative matters, but also reports to the 'Global Chief of Drilling Technology' for technical standards. What type of organizational structure is GeoThermal Dynamics using?
Answer options:
A.
Functional structure
B.
Divisional structure
C.
Matrix structure
D.
Entrepreneurial structure
How to approach this question
Look for the key phrase 'reports directly to... but also reports to...'. Dual reporting lines are the hallmark of a matrix structure.
Full Answer
C.Matrix structure✓ Correct
A matrix structure crosses functional and divisional lines, creating a dual command situation. Employees report to both a functional manager (for technical guidance) and a project/regional manager (for operational delivery).
Common mistakes
Confusing matrix with divisional. Divisional has autonomous units, but usually retains a single chain of command within that unit.
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