Read the following passage and answer the following questions.

'Mitabhi Colours' is a profitable company that makes different types of paint colors. Mitabhi colours is working by clubbing similar related jobs under different departments. The company is well-organized, and this has led to a consistent increase in revenue. Workers have clear job roles, which helps them gain experience and boost productivity. Each worker know who he has to take orders from and to whom he is accountable. The company recognizes the need to connect with employees and values them as its most important asset. Delegating tasks to employees not only frees managers from routine work but also provides valuable learning opportunities in practical situations. The company holds its meetings according to the mood of the members. It has no set pattern of behaviour.

Which organisation structure is followed by 'Mitabhi colours' company?

Functional structure

The correct answer is option 1- functional structure.

Mitabhi colours company is working by clubbing similar related jobs under different departments which shows that the functional structure is followed by the company.

Grouping of jobs of similar nature under functional and organising these major functions as separate departments creates a functional structure. A functional structure leads to occupational specialisation since emphasis is placed on specific functions. This promotes efficiency in utilisation of manpower as employees perform similar tasks within a department and are able to improve performance.