Identify the advantage of functional structure:

The correct answer is Option (1) → It promotes control and coordination within a department.

• Option (1) It promotes control and coordination within a department. — Correct. In a functional structure, jobs are grouped into departments by function, such as production, marketing and finance. Everyone in a department does similar tasks, so the head can guide, check and coordinate their work easily.

• Option (2) It helps in reducing managerial and operational efficiency. — Incorrect. The advantage is the other way round: the functional structure helps in increasing managerial and operational efficiency, which results in higher profit. Changing one word turns an advantage into a fault. Look out for the one small word that flips the meaning.

• Option (3) A functional structure leads to occupational dysfunction. — Incorrect. The advantage is that it leads to occupational specialisation: each department concentrates on one function, so its people become experts. “Dysfunction” would be a fault, not an advantage.

• Option (4) It is suitable for small organizations requiring less specialization. — Incorrect. A functional structure suits a large organisation with varied activities that needs a high degree of specialisation.