Overemphasis on one department's importance at the cost of the firm creates:
AInformal groups
BFunctional empires
CProduct divisions
DProfit centres
Answer & Solution
Correct answer: B. Functional empires
1. Departmental interests come first.
2. These are called functional empires.
3. They hinder interaction between departments.
_Source: syllabus Business Studies Part I, Chapter 5, Organising._
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