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

A company organises all of its staff into departments such as production, marketing, finance and human resources, each headed by a specialist manager. Which type of organisational structure is this?

This is a functional structure. Activities are grouped by specialist function such as production, marketing, finance and HR, with each department led by a specialist manager. It is not geographical, which groups by location, nor a matrix, which uses dual reporting lines.

  1. AFunctional structureCorrect
  2. BMatrix structure
  3. CGeographical structure

Explanation

Grouping staff by the specialist activity they perform (production, marketing, finance, HR) is a functional structure. A geographical structure groups by location, and a matrix has dual reporting lines, neither of which is described.

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