In the context of organizational structures, identify a difference between a functional structure and a network structure.

A) Division of labor in a functional structure is based on outputs, whereas division of labor in a network structure is based on inputs.
B) Coordination is hierarchical in a functional structure, whereas coordination in a network structure is in the form of cross-functional teams.
C) A functional structure organizes units based on the products manufactured, whereas a network structure organizes units based on the activities that each unit performs.
D) The importance of informal structure is modest in a functional structure, whereas the importance of informal structure is low in a network structure.

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NRahayu Rahim · Accepted Answer

Final Answer : B, Explanation :  Coordination in a functional structure is indeed hierarchical, reflecting its traditional, top-down approach to management and decision-making. In contrast, a network structure relies more on coordination across different functions, often through cross-functional teams, to promote flexibility and responsiveness to changes in the environment or market. This allows for more dynamic collaboration and sharing of resources across the organization.

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