Asked by Fabien Reuzeau on Sep 24, 2024

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​Which of the following is TRUE about firms organized along functional lines?

A) ​In functional organizations workers develop functional expertise
B) Workers find it difficult to share information within their division
C) They inhibit the exploitation of economies of scale
D) ​All of the above

Functional Organizations

A type of organizational structure that groups employees based on their specialized roles or functions.

Functional Expertise

The specialized knowledge or skills in a specific field or function, contributing to organizational success.

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale.

  • Learn about the properties and advantages of functional organization in organizations.
  • Evaluate the influence of organizational architecture on the dissemination of knowledge, the realization of economic efficiencies, and the advancement of expertise.
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Verified Answer

EA
Edwin arjona3 days ago
Final Answer :
A
Explanation :
Firms organized along functional lines have departments that are grouped based on their function, such as marketing, finance, and operations. This promotes the development of functional expertise within each department, enabling workers to focus on their specific area of knowledge and skill. Option B is incorrect because functional organizations can facilitate the sharing of information and expertise within departments. Option C is also incorrect because functional organizations can actually enhance economies of scale, especially if they result in the specialization of labor and the centralization of certain functions.