Community Bank Inc. currently operates with a functional structure. A lack of communication across functional departments has affected the performance of the employees. This scenario illustrates the concept of:
A) matrix structure.
B) top-down structure.
C) functional chimneys.
D) cross-functional team.

Question

Quizplus · Accepted Answer

Functional chimneys refer to a lack of communication and collaboration between different functional departments within a functional structure. This scenario clearly illustrates that issue, indicating that the bank is operating with functional chimneys. Matrix structure involves employees working on projects that cross different functional departments, while top-down structure is characterized by a clear chain of command and decision-making authority. Cross-functional teams, on the other hand, are formed specifically to improve communication and collaboration across functional departments.