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ACCA Applied Knowledge · Business and Technology · The formal and informal business organisation

A company operates in a complex, rapidly changing environment, creating innovative solutions for clients through multidisciplinary project teams. Experts are grouped flexibly, there is little standardisation, and coordination arises through informal communication. Which statement about Mintzberg's configuration for this company is most accurate?

The company is an adhocracy. Mintzberg's adhocracy suits complex, dynamic environments needing innovation, using flexible multidisciplinary project teams where experts from different areas blend together and coordinate through mutual adjustment rather than standard rules, procedures or direct supervision from the top.

  1. AIt is a machine bureaucracy because the technostructure is the key part and standardised outputs coordinate work
  2. BIt is a divisionalised form because the middle line holds power and standardised outputs coordinate work
  3. CIt is a simple structure because the strategic apex coordinates by direct supervision
  4. DIt is an adhocracy because support staff and operating core blend in teams and coordination is by mutual adjustmentCorrect

Explanation

Adhocracy suits complex, dynamic environments with innovation, using flexible multidisciplinary teams and mutual adjustment, with little formal standardisation. Machine bureaucracy suits stable environments and divisionalised form uses output standardisation, so neither fits the described informal coordination.

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