Which of the following is most likely to be true of a firm organized along functional lines?
A) There will be optimal coordination of information and decisions.
B) The firm will face decreasing returns to scale.
C) Information required for decisions will be generic and therefore easy to use.
D) Functional managers may not act in accordance with the firm's larger objectives.
E) Decision making in the organization will be highly centralized.

Question

Quizplus · Accepted Answer

Functional managers may prioritize their own functional goals over the larger objectives of the firm, leading to a lack of coordination and synergy between different departments. This can hinder the overall effectiveness of the organization.

Which of the Following Is Most Likely to Be True