'Grouping of jobs of similar nature under functional and organizing these major functions as separate departments.'
Which organisational structure is highlighted in this line?
Answer & explanation
Correct answer: option 1
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.