In an IT firm, there are separate departments for planning, operations and marketing. Each department functions independently, and has its own head. All departments report to their coordinating head, ensuring that different functions get the due attention. Which type of organization structure is this?

Option 1 -> Line structure involves a direct chain of command from top to bottom with clear authority lines, but doesn't emphasize departmentalization by specialized functions.

Option 2 -> Divisional structure organizes the company into semi-autonomous divisions based on products, geography, or markets, not by business functions like planning or marketing.

Option 3 -> Informal structure refers to unofficial relationships and communication networks that emerge naturally, not a formal departmental organization.

Option 4 -> Functional structure organizes the company into departments based on specialized business functions (planning, operations, marketing), each with its own head, all reporting to a central coordinating authority.

Hence, Option 4: Functional structure -> In this scenario, the firm is organized by specialized functions (planning, operations, marketing) with each department having its own head and operating independently while reporting to a coordinating head. This is the defining characteristic of a functional organizational structure, where grouping is based on specialized activities or functions to ensure each area receives focused attention and expertise -> correct