Organizational structure: an enterprise grouped by manufacturing, marketing, and finance functions is best described as what type of organization?

Difficulty: Easy

Correct Answer: functional organization

Explanation:


Introduction / Context:
Organizations can be structured by function, product, geography, customer segment, or as matrices that combine dimensions. Correctly identifying the structure matters for designing information flows, reporting lines, and performance metrics across departments like manufacturing, marketing, and finance.


Given Data / Assumptions:

  • Departments are defined by specialized functions (manufacturing, marketing, finance).
  • No cross-cutting product or project dimension is indicated.
  • We are naming the structural archetype that matches this arrangement.


Concept / Approach:
A functional organization groups people by expertise and similar activities. Manufacturing handles production, marketing handles market research and promotion, and finance manages accounting/treasury. A matrix adds a second dimension (e.g., product lines or projects) atop functions, which is not described here. Modular and “flow network” are unrelated to the classic functional grouping presented.


Step-by-Step Solution:

Identify the grouping dimension: functions.Match to “functional organization.”Eliminate matrix, which requires dual reporting to functions and products/projects.


Verification / Alternative check:
Management textbooks define functional departments exactly as listed; this alignment confirms the choice.


Why Other Options Are Wrong:

  • Matrix: requires two simultaneous structures; only one is given.
  • Flow network/modular: do not specifically describe function-based departmentalization.


Common Pitfalls:
Assuming any multi-department chart is a matrix; matrix requires explicit cross-cutting product or project authority lines.


Final Answer:
functional organization

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