Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What allows greater flexibility in a matrix organization?

1. Standardized roles across the organization

2. Ability to adapt to changes in projects and collaborations

3. Strict adherence to functional hierarchies

4. Direct supervision by a single manager

The correct answer is: Ability to adapt to changes in projects and collaborations

Greater flexibility in a matrix organization stems from its ability to adapt to changes in projects and collaborations. This organizational structure is designed to enhance the efficiency and responsiveness of the team by allowing individuals to work across different functions and on multiple projects simultaneously. In a matrix organization, team members often report to more than one manager – typically one for their functional area and one for the project they are involved in. This dual reporting system enables quick decision-making, fosters innovation, and allows the organization to shift resources and priorities as needed in response to project demands or external market changes. The adaptability characteristic of matrix organizations contrasts sharply with rigid structures that might enforce standardized roles or strict hierarchies, limiting the ability to respond to dynamic business environments effectively.