Question

With respect to a functional structure, the fixing of responsibility is:

Options

• Irrelevant because responsibilities are fixed on product divisions

• Easy because each department handles one complete product

• Difficult to fix responsibility on a department

• Easy to fix responsibility for performance

Answer 1

In a functional structure, departments are created on the basis of functions rather than products, so it becomes difficult to fix responsibility on a department for overall results. Fixing responsibility for performance is easy only in a divisional structure.