Question

Functional structures are usually found in organizations where there

are unrelated service offerings.

is a single or closely related product.

is no vertical integration.

exists a strong need to decentralize decision making.

Answer 1

The correct answer is "is a single or closely related product."

Functional organization is nothing but the organizational structure where the employees are divided bases on the function or role. Example IT, finance, HR etc. The advantage of functional organization are that it can divide the work based on the specialization. The group of people under each functions are skilled to perform the particular job efficiently. This can lead to highest level of performance of each function. Functional structure are developed when the products or services are closely related, production volume is high and there are some vertical integration.