Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which type of organization is characterized by a wide span of control?

1. Tall organization

2. Flat organization

3. Boundaryless organization

4. Virtual organization

The correct answer is: Flat organization

A flat organization is characterized by a wide span of control, which means that a single manager supervises a larger number of employees compared to a tall organization. In flat structures, there are fewer levels of management, which leads to a broader base of direct reports. This structure encourages more autonomy among employees and often fosters quicker decision-making processes since there are fewer layers of approval needed. In contrast, tall organizations have multiple hierarchical levels, which result in a narrower span of control. This can lead to more detailed supervision at each level but might slow down communication and decision-making. Boundaryless and virtual organizations do not have a standardized structure like flat or tall organizations; they are often more flexible and networked, focusing on collaboration and contractual relationships rather than traditional managerial hierarchies.