What is meant by functional structure of an organisation? For which type of business
enterprises is this structure most suitable? State any four advantages of this form of
organisational structure
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13
Answer:
A functional organization is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing.
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Answer࿐
Functional structure of an organisation:-
This is the simplest & the most prevalent form of organizational structure. Functional organisational structure refers to the structure in which different departments are created on the basis of major functions performed in the organisation.
Advantages:-
- Decisions are taken much faster in divisional structure.
- It facilitates expansion and growth as new divisions can be added without interrupting the existing operations.
- It leads to specialization of physical facilities and human talent.
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