Which of the following is true of the functional approach to departmentalization?

Question

Quizplus · Accepted Answer

The functional approach to departmentalization groups together similar and related skills, functions and activities. This creates economies of scale as increased volume leads to low organizational costs. This approach helps the organization to perform more efficiently and effectively, and cuts down on duplication of effort. It also allows for specialization in terms of deeper skill development in each functional area. However, it may lead to a lack of communication and coordination among the functional areas, but it does not prevent opportunities for in-depth skill development. It does not give decision-making authority to the organization's customers.

Which of the Following Is True of the Functional Approach