ExpertMedium2 marksMultiple Choice
Syllabus B: Organisational structure, culture, governance and sustainabilitySection ASyllabus BOrganizational Structure
ACCA · Question 07 · Syllabus B: Organisational structure, culture, governance and sustainability
A cross-border renewable energy firm requires its engineers to report to both a Regional Geographic Manager and a Global Head of Engineering. What is the primary disadvantage of this organizational structure?
A cross-border renewable energy firm requires its engineers to report to both a Regional Geographic Manager and a Global Head of Engineering. What is the primary disadvantage of this organizational structure?
Answer options:
A.
It prevents the sharing of technical expertise across different regions.
B.
It can lead to conflicting instructions and dual command issues.
C.
It centralizes all decision-making at the very top of the organization.
D.
It is only suitable for very small, single-product businesses.
How to approach this question
Identify the structure described (Matrix) and recall its most famous drawback regarding reporting lines.
Full Answer
B.It can lead to conflicting instructions and dual command issues.✓ Correct
The scenario describes a Matrix structure. While it improves cross-functional communication, its primary disadvantage is the dual reporting line, which can cause role ambiguity, conflicting priorities, and power struggles between managers.
Common mistakes
Failing to recognize the description as a Matrix structure.
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