Setting up an organization according to functional structure is quite popular. Which of the following is NOT a benefit of functional departmentalization?

A) Workers are grouped by specialization.
B) There are cost savings and efficiency improvements.
C) Employees in a department tend to think alike.
D) Specialists can easily coordinate within the department.
E) Management can easily direct department activities.

Answer: C
Explanation: C) When employees in a department tend to think alike because they all do similar jobs, finding new ways to approach problems may be difficult.

Business

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When a company chooses to divest a particular strategic business unit, it ________

A) increases the advertising budget for that strategic business unit B) invests more in the strategic business unit to build its market share C) sells off or phases out the strategic business unit D) invests just enough in the strategic business unit to keep its market share at the current level E) gradually increases investment in the strategic business unit over time to maximize profits

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