Question

Which of the following is not a demerit of functional structure?

• A. It may lead to a conflict of interests among departments due to varied interests.
• B. It may lead to difficulty in coordination among functionally differentiated departments.
• C. It leads to occupational specialisation.
• D. It places more emphasis on the objectives pursued by a functional head than on overall enterprise objectives.

Answer 1

The correct option is C

It leads to occupational specialisation.

Answer (c) It leads to occupational specialisation.

Explanation: A functional organisational design is a structure used to coordinate employees. They are grouped depending on their particular abilities and knowledge. It is a vertically structured organisation with all divisions regarding jobs, from the President to the Finance department and Sales departments, to client care, to representatives doled out to one service or product are defined. Occupational specialisation is not a demerit of a functional structure.