BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Each department has its own responsibilities
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Few managers.
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the structure is complex
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There is no specialization
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Detailed explanation-1: -A functional organization is a vertical hierarchy. The company is divided into different functional departments with employees who specialize in specific tasks. Functional departments usually operate in silos because each group has its own independent vertical management structure.
Detailed explanation-2: -Functional department means a department of the Company or of a Subsidiary which is incharge with specific missions which are not Business Lines (such as Financial department, Human Resources department, IT department etc.
Detailed explanation-3: -Answer and Explanation: The correct option is: E. Functional structures are extremely efficient when the organization has fewer product lines or services.
Detailed explanation-4: -Divisional org structure In divisional organizational structures, a company’s divisions have control over their own resources, essentially operating like their own company within the larger organization. Each division can have its own marketing team, sales team, IT team, etc.