A small furniture-manufacturing firm with 100 employees is located in a two-story building and does not plan to expand. The furniture manufactured is not special-ordered or custom-made. The most likely structure for this organization would be:
A) Functional departmentalization.
B) Product departmentalization.
C) Matrix organization.
D) Divisional organization.

Question

Quizplus · Accepted Answer

Functional departmentalization is suitable for a small firm like this, as it allows for grouping employees based on their specific roles or functions, such as production, sales, and administration, which is efficient for a stable and non-expanding organization.

A Small Furniture-Manufacturing Firm with 100 Employees Is Located in a Two-Story