'Grouping of jobs of similar nature under functional and organizing these major functions as separate departments.'

Which organisational structure is highlighted in this line?

Functional

The correct answer is option 1- Functional.

Grouping of jobs of similar nature under functional and organising these major functions as separate departments creates a functional structure. All departments report to a coordinating head. For example, in a manufacturing concern division of work into key functions will include production, purchase, marketing, accounts and personnel. These departments may be further divided into sections. Thus, a functional structure is an organisational design that groups similar or related jobs together.