Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following categories describes a centralized structure with power concentrated at the strategic apex?

1. Professional bureaucracy

2. Simple structure

3. Machine bureaucracy

4. Adhocracy

The correct answer is: Simple structure

A centralized structure with power concentrated at the strategic apex is best described by a simple structure. In this type of organizational design, decision-making authority is primarily held at the top level of management. This reflects a straightforward hierarchy where a few individuals at the top make most of the decisions without the complexity of extensive layers of management. The simple structure is characteristic of small organizations or startups, where the demands on the organization may be limited, and direct control can be exercised more easily. This environment allows for flexibility and swift decision-making, as there is less bureaucracy to navigate. In contrast, the other structures mentioned, such as professional bureaucracy, machine bureaucracy, and adhocracy, feature varying degrees of decentralization and specialization. Professional bureaucracy relies on a high level of skilled professionals and shared decision-making, machine bureaucracy is heavily bureaucratic with formal procedures and high specialization, while adhocracy is flexible and decentralized, promoting innovation and project-based work. These characteristics differentiate them clearly from a simple structure where concentration of power at the apex is a defining trait.