One of the Defining Characteristics of a Functional Organizational Structure

question 100

Multiple Choice

One of the defining characteristics of a functional organizational structure is that it:

• A)has a narrow span of control and high degree of formalization and centralization.
• B)is the only structure that organizes employees around specific knowledge or other resources.
• C)overlays two organizational structures in order to leverage the benefits of both types of structure.
• D)uses self-directed work teams rather than individuals as the basic building block of organizations.
• E)is an alliance of several organizations for the purpose of creating a product or serving a client.

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Definitions:

Specialization

The focus by an individual, firm, or country on producing a limited range of goods or services, often to improve efficiency and productivity.

Mutually Beneficial

A situation or transaction where all parties involved gain or benefit from the arrangement.

Terms of Trade

The ratio of export prices to import prices. It shows how much import goods a country can buy for each unit of export goods it sells.