Which type of organisational structure is suitable when the size of the organisation is large, has a diversified activities & operations, require high degree of specialisation?
Answer & explanation
Correct answer: option 4
The correct answer is option (4)- Functional structure.
Functional structure is suitable when the size of the organisation is large, has a diversified activities & operations, require high degree of specialisation.
Functional structure- 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.
Suitability: It is most suitable when the size of the organisation is large, has a diversified activities and operations require a high degree of specialisation.