Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which category of Mintzberg's framework is most vulnerable due to concentrated power?

1. Divisionalized structure

2. Simple structure

3. Adhocracy

4. Professional bureaucracy

The correct answer is: Simple structure

The simple structure is identified as the category most vulnerable due to concentrated power because it typically features a flat organizational hierarchy with few formalized processes. In this structure, a single individual, often the owner or founder, has significant control and decision-making power. While this can lead to quick decision-making and flexibility, it also poses risks. If the central figure in a simple structure makes poor decisions or mismanages resources, the entire organization can suffer significantly, as there are limited checks and balances in place to mitigate such risks. The lack of a comprehensive support system or formal division of roles makes the organization highly dependent on the capabilities and judgment of that one person. In contrast, other structures like the divisionalized structure, professional bureaucracy, and adhocracy have more distributed power or established processes, making them relatively more resilient to the vulnerabilities associated with concentrated power. These structures often incorporate various levels of management and specialization, allowing for more shared responsibility and diversified decision-making, which are not hallmarks of the simple structure.