Business Studies

Answer the following question in a sentence or a word.
State any one type of organisational structure.


SOLUTION

Functional Structure of an Organization

Functional structure is set up so that each portion of the organization is grouped according to its purpose. In this type of organization, for example, there may be a marketing department, a sales department and a production department. The functional structure works very well for small businesses in which each department can rely on the talent and knowledge of its workers and support itself.

However, one of the drawbacks to a functional structure is that the coordination and communication between departments can be restricted by the organizational boundaries of having the various departments working separately.

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Subjective Medium Published on 18th 09, 2020
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