Functional structures tend to be less flexible, but more innovative than divisional structures.

Question

Quizplus · Accepted Answer

Functional structures are very efficient, with little redundancy across units, and provide little opportunity for self-cannibalization or for rogue units running wild. Functional structures are most appropriate in stable, predictable environments, where demand for resources can be well anticipated and coordination requirements between jobs can be refined and standardized over consistent repetitions of activity.

Functional Structures Tend to Be Less Flexible, but More Innovative