ExpertACCA · Question 48 · Syllabus B: Organisational structure, culture, governance and sustainability
Section B (Syllabus B)
Scenario: 'TerraExtract' is a legacy coal mining corporation. Facing global pressure, the Board of Directors has mandated a transition to green energy (solar/wind). Historically, TerraExtract had a strict 'Role Culture' with a tall, centralized hierarchy. To manage the transition, they have created a new 'Green Innovations' division that operates with a flat structure, decentralized decision-making, and a 'Task Culture'. The legacy coal division and the new green division are currently experiencing severe cultural clashes.
Based on the scenario and your knowledge of organizational structure and culture (Syllabus B), select the FOUR correct statements.
Section B (Syllabus B)
Scenario: 'TerraExtract' is a legacy coal mining corporation. Facing global pressure, the Board of Directors has mandated a transition to green energy (solar/wind). Historically, TerraExtract had a strict 'Role Culture' with a tall, centralized hierarchy. To manage the transition, they have created a new 'Green Innovations' division that operates with a flat structure, decentralized decision-making, and a 'Task Culture'. The legacy coal division and the new green division are currently experiencing severe cultural clashes.
Based on the scenario and your knowledge of organizational structure and culture (Syllabus B), select the FOUR correct statements.
Answer options:
The legacy coal division's 'Role Culture' is likely characterized by strict job descriptions, bureaucracy, and formal rules.
The 'Green Innovations' division's flat structure means it has a wider span of control compared to the legacy division.
Decentralized decision-making in the new division allows for faster responses to the rapidly changing green energy market.
The cultural clash is an example of the difficulties in managing change when moving from a mechanistic structure to an organic structure.
The Board of Directors' mandate to transition to green energy is an example of an operational, short-term decision.
A 'Task Culture' relies primarily on the power of a single central founder to make all decisions.
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