An adhocracy structure is best described by which characteristic?

Prepare for the CIMA Managing Finance in a Digital World (E1) Exam. Use multiple choice questions and study aids to enhance your knowledge. Get exam-ready with our insights and tips!

Multiple Choice

An adhocracy structure is best described by which characteristic?

Explanation:
An adhocracy is built for flexibility and innovation, with work organized around projects rather than rigid departments. It relies on cross-functional, temporary teams formed to tackle specific opportunities, and authority tends to shift to whoever is best suited for the task. This makes the description of complex and project-based teams the best fit, since adhocracies assemble diverse experts into evolving teams to address new problems. The other options describe more rigid or standardized setups—centralized staff, heavy formal controls, or stable, routine processes—which contradict the flexible, project-driven nature of an adhocracy.

An adhocracy is built for flexibility and innovation, with work organized around projects rather than rigid departments. It relies on cross-functional, temporary teams formed to tackle specific opportunities, and authority tends to shift to whoever is best suited for the task. This makes the description of complex and project-based teams the best fit, since adhocracies assemble diverse experts into evolving teams to address new problems. The other options describe more rigid or standardized setups—centralized staff, heavy formal controls, or stable, routine processes—which contradict the flexible, project-driven nature of an adhocracy.

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