Identify the advantages of the functional structure from the options given below.
- (A) It leads to occupational specialisation since emphasis is placed on specific functions. This promotes efficiency in the utilisation of manpower as employees perform similar tasks within a department and are able to improve performance.
- (B) It promotes control and coordination within a department because of similarity in the tasks being performed.
- (C) It promotes flexibility and initiative because each unit functions as an autonomous sector, which leads to faster decision-making.
- (D) It helps in increasing managerial and operational efficiency and this results in increased profit.
Choose the correct answer from the options given below:
Identify the advantages of the functional structure from the options given below.
- (A) It leads to occupational specialisation since emphasis is placed on specific functions. This promotes efficiency in the utilisation of manpower as employees perform similar tasks within a department and are able to improve performance.
- (B) It promotes control and coordination within a department because of similarity in the tasks being performed.
- (C) It promotes flexibility and initiative because each unit functions as an autonomous sector, which leads to faster decision-making.
- (D) It helps in increasing managerial and operational efficiency and this results in increased profit.
Choose the correct answer from the options given below:
Solution
Option 1 -> (A), (B), and (D) are advantages of functional structure - specialization, control within departments, and efficiency gains are key benefits of organizing by function.
Option 2 -> Incorrect because (C) describes divisional structure characteristics, not functional structure, while excluding the valid advantage (D).
Option 3 -> Incorrect because (C) is not an advantage of functional structure - autonomous units and flexibility are features of divisional structures, not functional ones.
Option 4 -> Incorrect because it excludes (A), which is a core advantage of functional structure, and includes (C), which describes divisional structure benefits.
Hence, Option 1: (A), (B) and (D) only -> Functional structure advantages include: (A) occupational specialization leading to efficiency through similar tasks, (B) easier control and coordination within departments due to task similarity, and (D) increased managerial/operational efficiency resulting in higher profits. Statement (C) is incorrect as it describes divisional structure characteristics - functional structures are actually less flexible and do not operate as autonomous units, requiring cross-functional coordination for decisions -> correct
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2023: 22 June Shift 1