Certification in Supplier Diversity Practice Exam

In larger organizations, what is a common issue with functional organizational structures?

1. Rapid decision-making

2. High levels of collaboration

3. Slow response times

4. Encouragement of innovative solutions

The correct answer is: Slow response times

In larger organizations, functional organizational structures often lead to slow response times. This occurs because such structures can create silos, where different departments or functions operate independently and may have limited communication with one another. As a result, when issues arise or quick decisions are needed, the process of gathering input from various functions can be cumbersome and time-consuming. In environments that require agility and quick adaptation to change, these silos can hinder effective collaboration and lead to delays in decision-making. Instead of responding rapidly to market changes or customer needs, the organization may find itself bogged down in the need to consult multiple levels or departments before a decision can be made. This inefficiency is a common challenge faced by larger companies utilizing a functional structure, which can ultimately impact their competitiveness and ability to innovate swiftly.