Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which organizational type is characterized by a reliance on standards set by professional associations?

1. Machine bureaucracy

2. Simple structure

3. Professional bureaucracy

4. Support staff

The correct answer is: Professional bureaucracy

The correct answer is characterized by its reliance on standards established by professional associations, which is essential to ensuring quality and consistency in the services provided. This organizational type primarily consists of skilled professionals who rely on their specialized knowledge and training. Examples include universities, hospitals, and law firms where professionals like doctors or lawyers operate within a framework defined by professional standards, ethics, and guidelines set by recognized bodies in their fields. In a professional bureaucracy, the organization is structured to support the expertise of its members, allowing for decentralized decision-making and emphasizing professional judgment and standards. This reliance on external standards promotes accountability and enhances the organization’s credibility. Other organizational types do not emphasize the same level of dependence on professional standards. For instance, a machine bureaucracy typically relies on formalized rules and procedures to manage tasks and operations, which is less about professional standards and more about efficiency and control. A simple structure, often seen in small startups, relies on direct supervision by a central figure rather than adherence to professional standards. Support staff, while essential in many organizations, does not define an organizational type but rather refers to personnel who provide administrative or technical assistance without being the core source of professional practice.