Read the following statements and mark the correct option carefully.

Assertion: Specialisation is encouraged by functional structure.
Reasoning: In case of functional structure each department must perform a specified function.

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

The correct answer is option 1-  Both Assertion (A) and reasoning (R) are correct but R is the correct explanation of A.

Both the assertion and reasoning are correct. The functional structure organizes an organization into departments based on functions or specialized tasks. Each department is responsible for a specific function, which promotes specialization within that function. Specialization is encouraged because each department focuses on its specialized function, leading to expertise and efficiency in that specific area.