As an organization increases the kinds of goods it manufactures or the services it provides, a functional structure becomes more effective at coordinating task activities.

Question

Quizplus · Accepted Answer

As an organization increases the variety of goods it manufactures or services it provides, a divisional structure tends to be more effective because it allows for specialization in specific product lines or services, improving coordination and focus.

As an Organization Increases the Kinds of Goods It Manufactures