Functional structures are more appropriate than divisional structures when
A)the environment is unstable.
B)it is difficult to anticipate the demand.
C)coordination requirements between jobs are inconsistent.
D)the organization competes on costs.
E)the environment is unpredictable.

Question

Quizplus · Accepted Answer

Functional structures are more efficient in stable environments where the organization can focus on improving efficiency and reducing costs through specialization and division of labor. Divisional structures are more suited to unstable or unpredictable environments where adaptability and responsiveness are key.

Functional Structures Are More Appropriate Than Divisional Structures When