ACCA Applied Knowledge · Business and Technology · Business organisational structure
A consultancy has a small core team and uses external specialists, outsourced suppliers and freelancers, coordinated through technology, to deliver client work. Which modern organisational form is this?
This is a network organisation. It keeps a small core team and relies on outsourced suppliers, freelancers and specialists linked by technology. Functional and bureaucratic structures keep work in-house within rigid hierarchies, which does not match the described firm.
- ANetwork organisationCorrect
- BFunctional organisation
- CMechanistic bureaucracy
Explanation
A network organisation keeps a small core and relies on external parties linked by technology. Functional and bureaucratic forms keep activities in-house under formal, rigid structures, so they do not fit.
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