Question : Grouping of activities on the basis of functions is a part of _____________.
Option 1: Decentralisation organisation
Option 2: Divisional organisation
Option 3: Functional organisation
Option 4: Centralised organisation
Correct Answer: Functional organisation
Solution :
When the activities or jobs are grouped keeping in mind the functions or the job then it is called functional structure. For example, all the jobs related to production are grouped in production department, related to sales in sales department, related to purchase in purchase department and so on.
Hence, option 3 is the correct answer.