As an organization grows, and its activities become more diverse and complex, a functional structure may no longer allow it to coordinate its activities effectively.

Question

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As an organization grows and expands, a functional structure may no longer suffice to manage its diverse and complex activities, and it may require a more flexible or adaptable organizational structure. This may include adopting a divisional, matrix, or hybrid structure that enables better coordination, collaboration, and communication across different departments or business units.

As an Organization Grows, and Its Activities Become More Diverse