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 ?

Functional structure

The correct answer is option (4) : Functional structure

Formal Structure:

• Explanation: Clear and organized hierarchy with defined roles.

• Suitability: Generally applicable but can be rigid for large and diversified organizations.

Dimensional Structure:

• Explanation: Often refers to a matrix structure with dual reporting relationships. • Suitability: Useful for diverse activities but can be complex and lead to power struggles.

Informal Structure:

• Explanation: Unofficial networks and relationships in addition to the formal structure.

• Suitability: Naturally exists in all organizations; enhances flexibility but may lack control.

Functional Structure:

• Explanation: Organizes based on specialized functions or departments.

• Suitability: Highly suitable for large, diversified organizations requiring specialization. Efficient but may limit cross-functional communication.