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Questions
What is meant by 'functional structure' of an organisation?
Explain the concept of 'functional structure' of an organisation.
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Solution
A functional organisational structure is one wherein the activities of a similar nature are grouped together in departments, and all departments in turn report to a head. For example, an organisation can have numerous departments such as production, human resources, finance and marketing, each of which in turn reports to a coordinating head.
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- Identify and state the organisational structure adopted by the company.
- State two benefits and two limitations of the identified structure highlighted in the above case.
