Which organization structural type groups activities together based on shared professional skills, specializations, or resource usage (e.g., Marketing, HR, Finance)?
ADivisional Structure
BFunctional Structure
CMatrix Structure
DNetwork Structure
Explanation
• Functional Structure groups jobs based on operational functions (e.g., Production, Marketing, Finance, HR).
• It fosters high task specialization, economies of scale, and functional expertise within departments.
• A common limitation is functional silos, where inter-departmental communication becomes hindered.
Exam Relevance
- Topic: Organizing
- Subtopic: Organizational Structure Types

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