Question

Companies engaged in a single line of business most commonly utilize an organizational structure that can be:_______.

Answer 1

Answer:

b. a functional (departmental) organizational structure.

Explanation:

Companies engaged in a single line of business most commonly utilize an organizational structure that can be a functional (departmental) organizational structure.

A functional (departmental) organizational structure is a type of structure used to organize staffs by dividing them into various departments based on their skill set, roles or functions and knowledge.

These departments which are vertically structured may include, finance, information and communications technology, sales and marketing, research and development, customer service etc. Also, the various departments are headed by a functional manager who are saddled with the responsibility of overseeing, managing and reporting to the executive management.

Hence, a functional (departmental) organizational structure enhance efficiency and an improved quality of production because workers having similar skills, knowledge and experience are grouped together to achieve common goals and objectives.