Correct Answer: Clear division of labor

Solution : The correct answer is (b) Clear division of labor

A functional organizational structure is characterized by grouping employees based on their functional expertise or specialized areas of work. Each department or functional area focuses on specific tasks or activities related to their specialized function, such as finance, marketing, operations, or human resources.

A clear division of labor is a key characteristic of a functional structure, as it ensures that employees within each functional area have clearly defined roles, responsibilities, and tasks. This division of labor allows for specialization and expertise development within specific functional domains. It helps to streamline operations, improve efficiency, and enhance performance within each functional area.