In a functional structure, a firm
A) groups diverse functions into separate divisions.
B) divides people into units in terms of the main activities that need to be performed.
C) gives equal authority to both divisional and functional managers.
D) categorizes its employees based on their performance and commitment.

Question

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In a functional structure, a firm divides people into units in terms of the main activities that need to be performed. For example, all the individuals with marketing expertise are grouped into the marketing department, while those with expertise in finance are assigned to the finance department. This structure allows for specialization in each function and efficient use of resources.

In a Functional Structure, a Firm