Question

Which of the following points highlight the suitability of functional structure?

Options

• Large Size

• Varying Functions

• Requirement of Specialisation

• All of the above

Answer 1

All of the above

Explanation -

The following points highlight the suitability of functional structure.

1. Large Size : A large organisation can run well if the work is separated into different divisions. In large organisations, departmentalization increases managerial efficiency and control. As a result, the task goes smoothly.
2. Varying Functions: Dealing with a variety of different functions at the same time necessitates a high level of coordination in order to maximise efficiency. A functional organisation facilitates coordination among the many roles and so assures smooth operation by clearly dividing activities in separate departments.
3. Requirement of Specialisation : Specialisation can help different functions in an organisation perform better. Each department can function autonomously and specialise in their own functions thanks to departmentalization.