The functional structure is well-suited when:
A)There are low levels of external uncertainty.
B)There is high instability in the environment.
C)Project coordination is assigned to the lowest levels in an organization.
D)There must be rapid response to external opportunities and threats.

Question

Quizplus · Accepted Answer

The functional structure is well-suited when there are low levels of external uncertainty. This is because the functional structure is based on a clear division of labor and specialization, allowing for efficient and effective operations within a stable environment. In contrast, high levels of external uncertainty would require a more flexible and adaptable organizational structure, such as the matrix structure, to ensure rapid response to external opportunities and threats. Therefore, options B and D are incorrect. Option C is not necessarily true, as project coordination can be assigned to different levels depending on the specific organizational structure and context.

The Functional Structure Is Well-Suited When