Which type of organizational structure works well for smaller organizations, where employees are managed by means of clear levels of authority, but with a risk of lack of communication between the different departments because of their tendency to work separately from each other?
A) divisional
B) simple
C) matrix
D) functional

Question

Quizplus · Accepted Answer

Functional organizational structure is ideal for smaller organizations where employees are grouped by their knowledge and skills, which leads to clear levels of authority. However, this structure can result in poor communication between different departments due to their tendency to operate independently.

Which Type of Organizational Structure Works Well for Smaller Organizations