General Studies · Organizational Structure
The CEO argues that Merik's current functional structure is efficient and well-suited for the company's future growth, while some managers are concerned that it may lead to new challenges after the acquisition. Which of the following statements correctly identifies a potential advantage and a potential disadvantage of Merik's functional structure?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Advantage: It allows Merik to maximize economies of scale. Disadvantage: It offers defined career paths for employees.
- 2Advantage: It can cope well with significant diversification and growth. Disadvantage: It may lead to conflicts between different departments.
- 3Advantage: It often enjoys strong goal congruence throughout the organization. Disadvantage: It may slow down decision-making due to a longer chain of command.✓
- 4Advantage: It promotes a 'team-working' approach where employees take on different roles. Disadvantage: It may lead to empire-building among department managers.
Correct answer
Advantage: It often enjoys strong goal congruence throughout the organization. Disadvantage: It may slow down decision-making due to a longer chain of command.
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