Prolever Systems is a multidomestic company that is undergoing organizational restructuring. Chris, the managing director, meets with the managers from various departments to decide the most suitable type of structure for the firm. The managers believe that a functional structure would work best for the firm. However, Chris is not convinced with the idea. Which of the following statements justifies Chris's viewpoint in this scenario?
A) People belonging to each function will be unable to develop expertise.
B) Coordinating with all the people who work on the same tasks will be difficult.
C) Cross-functional interaction will be limited leading to slow response to market needs.
D) Streamlining the vertical flow of knowledge within each functional unit will be restricted.

Question

Quizplus · Accepted Answer

Cross-functional interaction is often limited in a functional structure, which can slow down the response to market changes or needs. This is a valid concern for a multidomestic company like Prolever Systems, which needs to be agile and responsive to the diverse needs of different markets.

Prolever Systems Is a Multidomestic Company That Is Undergoing Organizational