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ACCA Strategic Professional · Strategic Business Leader · Enabling success: organising

Brightwell Group has five product divisions, each run by a divisional manager who is judged on return on investment and revenue targets set by head office. Head office does not interfere in day-to-day operations. Which Mintzberg configuration is described, and what is its main coordinating mechanism?

Brightwell is a divisionalised form, where the middle-line divisional managers are the key part and head office coordinates mainly by standardising outputs through performance targets such as return on investment, leaving daily operations to the divisions.

  1. AMachine bureaucracy, with standardisation of work processes
  2. BDivisionalised form, with standardisation of outputsCorrect
  3. CSimple structure, with direct supervision
  4. DAdhocracy, with mutual adjustment

Explanation

The divisionalised form has the middle line (divisional managers) as the key part and head office controls through performance targets, i.e. standardised outputs. The machine bureaucracy option is wrong because it standardises processes, not results.

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