Under which of the following situations are managers most likely to use functional structure?
A) The organization produces a large number of different products.
B) The organization can easily measure the cost of each function's contribution to the development of each product.
C) The organization produces products in several different geographic locations.
D) The organization sells its products to only one major type of customer.

Question

Quizplus · Accepted Answer

In a situation where the organization is selling its products to only one major type of customer, managers are most likely to use functional structure. This is because the functional structure is designed to group together jobs that require similar skills and expertise, which can then focus on the specific needs of a single customer or customer group. This enables the organization to efficiently and effectively meet the needs of its customers while keeping costs low. The other options listed would require a more diverse structure, such as a divisional or matrix structure, to handle the complexity of multiple products or locations.

Under Which of the Following Situations Are Managers Most Likely