What is the main principle behind the division of labor in a functional structure?

• Centralization and control

• Innovation and creativity

• Flexibility and adaptability

• Efficiency and specialization

How does a functional structure contribute to efficiency in operations?

• A functional structure contributes to efficiency by promoting a lack of communication and collaboration among departments.

• A functional structure contributes to efficiency by promoting specialization, clear reporting relationships, and streamlined decision-making processes.

• A functional structure contributes to efficiency by encouraging micromanagement and excessive bureaucracy.

• A functional structure contributes to efficiency by creating confusion and ambiguity in roles and responsibilities.

Explain the concept of clear hierarchy in a functional structure.

• Functional structures do not require any hierarchy for effective operations.

• Clear hierarchy in a functional structure ensures that there is a clear line of authority and responsibility from top management to lower-level employees, facilitating efficient decision-making and communication.

• In a functional structure, hierarchy is not important as all employees have equal decision-making power.

• Clear hierarchy in a functional structure leads to chaos and confusion among employees.

Why is specialization of tasks important in a functional structure?

• Specialization of tasks in a functional structure hinders creativity and innovation.

• Specialization of tasks in a functional structure results in increased costs and inefficiencies.

• Specialization of tasks in a functional structure leads to confusion and lack of coordination among team members.

• Specialization of tasks in a functional structure allows individuals to focus on specific areas where they excel, leading to increased efficiency, productivity, and expertise in those particular tasks.

What is meant by centralized decision-making in the context of a functional structure?

• Decisions are made by an external consulting firm

• Key decisions are made by top management or a central authority within each functional area.

• Decisions are made by employees at all levels of the organization

• Decisions are made based on random selection

How does division of labor help in improving productivity in a functional structure?

• Specialization in tasks decreases productivity

• Division of labor leads to confusion and inefficiency

• Division of labor allows individuals to specialize in specific tasks, leading to increased efficiency and productivity.

• Individuals performing multiple roles simultaneously enhances productivity

Discuss the role of efficiency in operations in the success of a functional structure.

• Efficiency only leads to increased costs in a functional structure

• Efficiency has no impact on the success of a functional structure

• Efficiency hinders productivity in a functional structure

• Efficiency plays a crucial role in enhancing the success of a functional structure by improving productivity, reducing costs, and increasing competitiveness.

What are the advantages of having a clear hierarchy in a functional structure?

• Increased confusion among employees

• The advantages include clear lines of authority, improved decision-making efficiency, enhanced communication flow, facilitated task delegation, and promoted accountability.

• Slower decision-making processes

• Limited communication channels

In what ways does specialization of tasks lead to better performance in a functional structure?

• Specialization of tasks leads to decreased efficiency in a functional structure

• Specialization of tasks leads to better performance in a functional structure by allowing individuals to focus on specific areas of expertise, increasing efficiency and proficiency.

• Specialization of tasks leads to worse performance in a functional structure

• Specialization of tasks leads to increased confusion in a functional structure

Why is centralized decision-making considered a key feature of a functional structure?

• Centralized decision-making results in slower response times to changing market conditions.

• Centralized decision-making hinders innovation and creativity within the organization.

• Centralized decision-making leads to conflicts and power struggles among functional areas.

• Centralized decision-making provides clear authority and accountability, streamlined communication, and efficient coordination within functional areas.