If a firm's leaders are using a functional structure but feel it is becoming too complex as the company grows in size, the leaders can turn to:
A) a simple structure.
B) downsizing.
C) reengineering.
D) restructuring.
E) a multidivisional structure.

Question

If a firm's leaders are using a functional structure but feel it is becoming too complex as the company grows in size, the leaders can turn to:
A) a simple structure.
B) downsizing.
C) reengineering.
D) restructuring.
E) a multidivisional structure.

Quizplus · Accepted Answer

A multidivisional structure, also known as a divisional or M-form structure, can help alleviate the complexity of a functional structure by decentralizing decision-making and creating separate divisions for different products, regions, or customer groups. This allows for better coordination within each division and can lead to increased efficiency and flexibility in responding to market changes.

If a Firm's Leaders Are Using a Functional Structure but Feel