Question

Grouping of activities on the basis of functions is a part of

Options

• Decentralised organisation

• Divisional organisation

• Functional organisation

• Centralised organisation

Answer 1

Functional organisation

Explanation -

The term "functional organisation" refers to the grouping of functions that are comparable in nature. Each group constitutes its own department, which reports to a single leader. Departments may be divided based on functions such as production, human resources, and others that report to the organization's managing director.