Question : Statement 1: A functional organizational structure enhances specialized expertise.
Statement 2: It groups employees based on their skill sets and functions.
Option 1: Statement 1 is true, and Statement 2 is false.
Option 2: Statement 1 is false, and Statement 2 is true.
Option 3: Both Statement 1 and Statement 2 are true.
Option 4: Both Statement 1 and Statement 2 are false.
Correct Answer: Both Statement 1 and Statement 2 are true.
Solution : The correct answer is (c) Both Statement 1 and Statement 2 are true.
Statement 1 is true. In a functional organizational structure, employees are grouped based on their specialized skill sets and functions. This grouping allows individuals to focus on their areas of expertise, leading to the development and enhancement of specialized skills and knowledge within each function.
Statement 2 is true. A functional organizational structure groups employees based on their specific skill sets and functions. Each department or unit is organized to concentrate on a specific function or skill, promoting specialization and expertise within that particular area.
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