Jesse started a successful telecommunications company that provided voicemail services to business clients in the Midwest. As the business grew, Jesse added functional departments including a marketing department and an accounting department. After a few years, he realized that employees who specialized in these areas no longer shared knowledge with each other in the same way they did when the operation was smaller. As one of Jesse's business consultants, you explain that as the company grows taller, it cannot avoid this pitfall, and he should focus on continued functional departmentalization, especially if he supports innovation and learning.

Question

Quizplus · Accepted Answer

While it is true that as a company grows taller, functional departmentalization can lead to silos and a lack of cross-functional knowledge sharing, the statement that Jesse should focus on continued functional departmentalization is false. Instead, he should focus on implementing strategies and practices that encourage cross-functional collaboration and communication. This can include regular meetings or brainstorming sessions with employees from different departments, creating shared goals and objectives that require cross-functional cooperation, and building a culture that values and rewards collaboration.

Jesse Started a Successful Telecommunications Company That Provided Voicemail Services