Does it make sense for a firm to revert to a functional structure?
A)Maybe. It depends whether such a change is appropriate in the prevailing circumstances
B)Yes. The traditional functional structure has stood the test of time.
C)No. It's a retrograde step.
D)Yes, if part of a retrenchment strategy.

Question

Quizplus · Accepted Answer

The decision to revert to a functional structure depends on the specific circumstances facing the firm. While the functional structure has been used for many years, it may not be the most effective approach for all firms or situations. Therefore, firms should carefully evaluate their current situation and assess whether a functional structure would better serve their needs. However, if the firm is undergoing a retrenchment strategy, a move towards a functional structure may be appropriate for efficiency and cost-cutting reasons.

Does It Make Sense for a Firm to Revert to a Functional