The evolution of an organization into a functional structure with subunits performing different processes would most likely result from:
A) A need to deal with more complex markets.
B) A need to deal with a more challenging regulatory environment.
C) Increasing legal liabilities.
D) A required division of management tasks as the organization expands in size.

Question

Quizplus · Accepted Answer

A functional structure with subunits is typically adopted as an organization grows in size and the division of management tasks becomes necessary to maintain efficiency and effectiveness. This structure allows for specialization in different areas, improving operational efficiency.

The Evolution of an Organization into a Functional Structure with Subunits