Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which type of organizational structure allows for rapid response to customer needs?

1. Hollow structure

2. Flat structure

3. Divisional structure

4. Matrix structure

The correct answer is: Flat structure

A flat organizational structure is characterized by having few or no levels of middle management between staff and executives. This design promotes open communication and collaboration, enabling quicker decision-making processes. In such a setup, employees often have more autonomy and greater responsibility, which can lead to faster responses to customer needs and changes in the market. With fewer hierarchical barriers, information flows more freely, allowing teams to address issues or adapt to customer feedback promptly. The emphasis on teamwork and direct interaction fosters an environment where problems can be identified and solved quickly, ensuring that customer satisfaction is prioritized and efficiently managed. This type of structure is particularly beneficial in industries that require agility and responsiveness, enabling organizations to pivot quickly in response to customer demands or market dynamics.