ACCA Applied Knowledge · Business and Technology · Business organisational structure
Zeta Co is organised so that staff report both to a functional head, such as the finance director, and to a project manager for the product they are working on. Which feature is a recognised weakness of this arrangement?
The recognised weakness is conflict between the two managers and confusion over priorities. In a matrix structure, staff report to both a functional head and a project manager, so instructions can clash. Its strength is sharing specialist skills across projects, not preventing it.
- ALack of any formal hierarchy
- BPotential conflict between the two managers and confusion over prioritiesCorrect
- CComplete dependence on the decisions of the founder
- DInability to share specialist skills across projects
Explanation
This describes a matrix structure with dual reporting lines. Its recognised weakness is that two bosses may give conflicting instructions and compete for the employee's time. Specialist skills are actually shared well, and hierarchy still exists.
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