In an IT firm, there are separate departments for planning, operations and marketing. Each department functions independently, and has its own head. All departments report to their coordinating head, ensuring that different functions get the due attention. Which type of organization structure is this?

Functional structure

The correct answer is option 4- Functional structure.

Functional structure is highlighted in the given statement.

In this IT firm, there are separate departments for planning, operations, and marketing. Each department is based on a specific function of the business. Departments work independently, each with its own head, but report to a common coordinating authority. This setup is a classic example of a functional organizational structure, where the organization is divided based on functions or specialized activities. It helps in specialization, efficiency, and clear roles.

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.