In a Functional Structure, groups are formed around which criterion?

In a Functional Structure, groups are formed around which criterion?

• A. Product Lines
• B. Geographic Regions
• C. Occupational Specialties
• D. Customer Types

Answer: (C)

In a functional structure, groups are formed around what people do—their specialized functions or occupations. Departments are built by function such as finance, marketing, operations, and human resources, so the organization concentrates expertise and activities within each function. This setup boosts efficiency and depth of skill within areas, with clear lines of authority inside each function. Other approaches organize by product lines, geographic regions, or customer types, which create units based on what is offered, where in the world, or who is served. Those arrangements are characteristic of product-based, geographic, or market-based structures, not a functional one.

In a functional structure, groups are formed around what people do—their specialized functions or occupations. Departments are built by function such as finance, marketing, operations, and human resources, so the organization concentrates expertise and activities within each function. This setup boosts efficiency and depth of skill within areas, with clear lines of authority inside each function.

Other approaches organize by product lines, geographic regions, or customer types, which create units based on what is offered, where in the world, or who is served. Those arrangements are characteristic of product-based, geographic, or market-based structures, not a functional one.