In a functional organisational structure, employees are primarily grouped according to their:
Correct answer: A. Specialised business activities
- A. Specialised business activities
- B. Geographical territories
- C. Customer income levels
- D. Project completion dates
Explanation
A functional structure groups people by activities such as marketing, finance, production and human resources. Grouping by territory or product is more typical of divisional structures.
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About Organisational Structure and Management
Organisational structure explains how authority, responsibility, communication and tasks are arranged through functional, divisional, matrix and flat designs. Management covers planning, organising, staffing, directing and controlling, alongside delegation, span of control, centralisation, decentralisation and coordination.
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