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What is Meant by 'Functional Structure' of an Organisation? - Business Studies

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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