Which type of organizational structure is the most suitable for an organization which is large, has diversified activities and manufacturing one product?
Which type of organizational structure is the most suitable for an organization which is large, has diversified activities and manufacturing one product?
Solution
✅ Correct Option: 1
Functional structure suits organizations that are large, have diversified activities, and operate a single product line, because grouping is done by function (production, marketing, finance) to gain specialization. Divisional structure is suited for multi-product companies. Since the firm here manufactures only one product, functional structure is most appropriate.
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