Which of the following examples illustrates a functional structure? Group of answer choices Handy Homes has a financial department, a production department, and a sales department. Linda’s Pet Grooming has eight employees that all report to Linda. BG Limited has a Pacific Northwest division, a Midwest division, and a Northeast Division. Rio Riffic has a hydraulics division, a PVC division, and a fixtures division. AB Aeronautics has a private division, a commercial division, and a government division.

An organizational structure is a system that defines how specific activities such as task allocation, roles, supervision and coordination are directed so as to achieve organizational goals, aims and objectives. The organizational structure is divided into four (4) categories and these are;

1. Divisional structure.

2. Matrix structure.

3. Hierarchical or flat structure.

4. Functional structure.

A functional organizational structure can be defined as is an organizational structure used to divide the entire organization into smaller departments or groups based on specialized functional areas, knowledge and skills such as finance department, Information technology, marketing, sales department, research, procurement etc.

The functional organizational structure vertically divides the entire organization with roles from the top executives to functional managers and the respective employees in each department.

In this scenario, Handy Homes has a financial department, a production department, and a sales department illustrates a functional structure.

Functional organizations comprises of smaller departments that report to a top executives who are the sole authorities. The functional organizational structure is one of the most commonly used structure because it increases operational efficiency and encourages cohesiveness among the employees.