Question

Companies engaged in a single line of business most commonly utilize an organizational structure that can be A. a functional (departmental) organizational structure B. either a centralized, principal, or critical-path organizational structure C. either independent, consolidated, or hybrid profit centers D. hybrid functional organizations with a combination of decentralized and centralized decision making E. None of these choices is correct

Answer 1

Answer:

A. 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.

The employees in companies engaged in a single line of business are generally referred to as silos because they work independently, collaborate and communicate with their colleagues in a vertical style i.e exclusively with each other.

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.