Modular organisation
A modular organisation divides a product or production system into components that internal or external specialists can supply and the organisation integrates. Standard interfaces can support flexibility and specialist expertise, but compatibility, quality and coordination remain essential. It is more specific than simply dividing a business into departments.
Worked example
A manufacturer integrates standardised motors, controllers and casings obtained from specialist suppliers into a finished appliance and tests the assembled product.
Common mistake
Calling any set of self-contained departments a modular structure, or assuming bought-in modules need no integration or quality control.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Supporting | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |