Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which organizational structure is most suitable for rapidly changing environments?

1. Divisional structure

2. Functional departmentation

3. Adhocracy

4. Geographic departmentation

The correct answer is: Adhocracy

In rapidly changing environments, an adhocracy is often the most suitable organizational structure because it prioritizes flexibility, creativity, and innovation. This type of structure is characterized by a decentralized approach where individuals and teams are encouraged to work independently and collaborate across various functions without rigid hierarchies. In a dynamic environment, organizations need to respond quickly to changes and new opportunities, making it essential to have a structure that allows for swift decision-making and the ability to adapt to new challenges. An adhocracy fosters a culture of experimentation and cross-functional teamwork, enabling organizations to innovate and pivot as necessary. In contrast, other structures such as divisional or functional departmentation may impose layers of bureaucracy or create silos, which can hinder responsiveness and adaptability. A geographic departmentation structure might also limit flexibility since it relates to regions rather than focusing on project-based or innovative efforts that quickly respond to emerging conditions.