When the size of the organisation is large, with diversified activities and operations, requiring high degree of specialisation, which type of organisation structure will be most suitable.
When the size of the organisation is large, with diversified activities and operations, requiring high degree of specialisation, which type of organisation structure will be most suitable.
Solution
A divisional structure is most suitable for large organisations with diversified activities and operations, especially those producing multiple products or operating in different regions. However, when the activities require a high degree of specialisation in functions, a functional structure is typically suggested. As per the NTA answer key, the answer given is Divisional Structure.
Note: The question wording mixes attributes of divisional (diversified activities) and functional (specialisation) structures. The NTA key accepts Divisional Structure (option 1), but the option labels are also ambiguous. We follow the NTA key.
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