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: NCERT Class 12 Business Studies Part I, Chapter 5, Organising._
Related questions
Standards of behaviour in the informal organisation come from:The network of social relationships that arises from interaction among employees is the:A limitation of the formal organisation is:An advantage of the formal organisation is that it:The structure deliberately designed by management to accomplish a task is the:The functional structure is most suitable when operations require a high degree of:A drawback of the divisional structure is:A divisional head is responsible for the profit or loss of the division, so the division w