ITPEC IP October 2021 Question 66
ITPEC IP October 2021 — Question 66 of 100
A functional organization groups business operations into specialized units such as sales, finance, production, and human resources. Each unit develops expertise and performs a particular organizational function.
Answer (b)
Why not others:
- a temporary cross-functional structure created to solve a problem is a project organization
- profit responsibility organized by product or region describes a divisional organization
- combining vertical functional and horizontal product structures describes a matrix organization
Key rule: Functional structures group people by specialized work; divisional structures group them by outputs or markets.
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