Question

Under what circumstances would functional structure prove to be an appropriate choice?

Answer 1

SOLUTION :  

Under the following circumstances functional structure would prove to be an appropriate choice :  

• (i) When the size of business enterprises or organisation is large.

• (ii) Task requires a high degree of expert knowledge or specialists.

• (iii) Has different or varied activities .

 

★★ Advantage of  functional structure are as follows :  

(i) Specialisation

(ii) Coordination within department  

(iii) Increasing efficiency and gains.

(iv) Economics of large scale

(v) Ease in training of employees.

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Answer 2

Answer:

Under what circumstances would functional structure prove to be an appropriate choice? Ans: Functional structure would prove to be most suitable when the size of the organisation is large, has diversified activities and operations require a high degree of specialisation.