Which structure among the following is an organizational design that groups similar or related jobs together for occupational specialization?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Functional structure
Option (1) Divisional structure — Incorrect. A divisional structure groups people by product. Each division has its own production, marketing and finance. It is multifunctional, not grouped by one kind of job.
Option (2) Specialized structure — Incorrect. There is no such term. The two types of organisation structure are functional and divisional.
Option (3) Functional structure — Correct. Jobs of a similar nature are grouped into major functions, such as production, purchase, marketing and accounts. Each function becomes a department under a coordinating head. So a functional structure is an organisational design that groups similar or related jobs together. Because each department works on one function, it leads to occupational specialisation.
Option (4) Vertical structure — Incorrect. There is no such term among the types of organisation structure.
NCERT (2026-27 Edition): “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.” “Advantages: … (a) 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.” “Divisional Structure … In a divisional structure, the organisation structure comprises of separate business units or divisions.” |