(A) Functional by specialisation
(B) Matrix by specialisation and customer segment
(C) Network with flexible organic reporting lines
(D) Divisional by customer segment
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.
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.