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Which of the following are true of the functional structure?

A. It leads to occupational organisations

B. It leads to minimal duplication of efforts which results in economies of scale

C. Product specialisation helps in development of varied skills in divisional head

D. Easy training of employees as focus is on limited range of skills.

E. New divisions can be added without interrupting the existing operations

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

Functional structure leads to occupational specialisation (A), minimal duplication of efforts and economies of scale (B), and easy training of employees due to limited skill focus (D). Product specialisation and easy addition of new divisions are features of divisional structure, not functional.

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