Which of the following is true of a functional structure?
A) It reacts quickly to environmental changes.
B) It diminishes economies of scale compared to the divisional structure.
C) It often results in hierarchy overload.
D) It cannot work in small organizations.

Question

Quizplus · Accepted Answer

A functional structure results in hierarchy overload as there are many levels of management and decision-making. It is also designed to be efficient in performing specialized tasks, rather than reacting quickly to environmental changes. Economies of scale are often greater in a functional structure than a divisional structure. A functional structure can work in small organizations, but may not be optimal.

Which of the Following Is True of a Functional Structure