When you want to structure a cost conscious organisation that offers a service that centrally involves specialists who are expensive to train, and who can’t be trained across multiple specialisations, which of the following is the most logical structure to use?

(A) Functional by specialisation

(B) Matrix by specialisation and customer segment

(C) Network with flexible organic reporting lines

(D) Divisional by customer segment

Explanation

A Functional by specialisation organisation structure is the one in which the main organisation is divided into other smaller groups based on one specialised functional area. For example, a big company has many specialised departments like Marketing, Finance, Sales, etc.

Therefore, when you want to structure a cost conscious organisation that offers a service that centrally involves specialists who are expensive to train, and who can’t be trained across multiple specialisations you need to use the functional by specialisation structure.

Conclusion

This question is a part of the Recall organisational structure exercise from the Organisational design: Know your organisation course. You can check out all the answers to this exam in our Organisational design: Know your organisation Quiz Answers page.

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