Which of the following statements is true regarding a functional structure?
A) In a functional structure, it becomes easier for employees to supervise one another and control one another's behavior.
B) In the case of a functional structure, people are grouped together according to the specific demands of products, markets, or customers.
C) The use of the functional structure increases an organization's ability to quickly respond to the changing environment.
D) The functional structure can be used only in the decentralized organizations.

Question

Quizplus · Accepted Answer

In a functional structure, employees are grouped based on their roles and functions, leading to specialized departments such as marketing, finance, and human resources. This specialization allows for focused supervision and control within departments, but it does not inherently facilitate inter-departmental supervision or control by peers. Choices B and C describe characteristics of a divisional or matrix structure, not a functional one, and choice D is incorrect because a functional structure can be implemented in both centralized and decentralized organizations.

Which of the Following Statements Is True Regarding a Functional