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 ? |
Formal structure Dimensional structure Informal structure Functional structure |
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. |