The factor that distinguishes functional organizational structure from divisional is that
A) a functional structure is organized around the outputs a firm produces.
B) a functional structure is best suited to deal with environmental change.
C) a functional structure groups diverse functions into separate divisions.
D) a functional structure is organized in terms of the main activities to be performed.

Question

Quizplus · Accepted Answer

A functional structure is organized in terms of the main activities or functions to be performed, such as finance, marketing, production, and human resources. In contrast, a divisional structure groups together functions based on products or services, geography, or customer groups served. A functional structure is organized to increase efficiency and specialization within each function, while a divisional structure allows for greater flexibility and responsiveness to specific markets and customers.

The Factor That Distinguishes Functional Organizational Structure from Divisional Is