What is the risk of a functional structure?
A) The firm cannot avoid duplicating activities.
B) Employees begin to focus more on their functional areas.
C) The extra layer of management causes some divisions to work at cross purposes.
D) The firm does not achieve economies of scale in activities such as marketing.

Question

Quizplus · Accepted Answer

In a functional structure, employees tend to become more focused on their specific functional area, which can lead to silos within the organization where departments are more concerned with their own goals rather than the goals of the organization as a whole. This can hinder cross-departmental collaboration and alignment towards the company's overall objectives.

What Is the Risk of a Functional Structure