ACCA Applied Knowledge · Business and Technology · Business organisational structure
A consultancy firm assigns staff to projects led by project managers, while the same staff also report to heads of specialist departments such as tax and audit. Which structure is this?
This is a matrix structure. Staff belong to specialist functional departments but are also assigned to projects under project managers, giving them dual reporting lines, which can improve flexibility but may cause conflicting priorities.
- AMatrix structureCorrect
- BEntrepreneurial structure
- CTall hierarchical structure
Explanation
A matrix structure combines functional departments with project teams, so employees have two reporting lines. An entrepreneurial structure centres on one owner, and a tall hierarchy has many levels with single reporting lines.
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