QUESTION 23

We talked about the "functional organizational structure." What are the pros and cons of this structure?

	A.	The pros are: This structure can lead to fragmentation across the firm where each functional area is fragmented into smaller pieces of the firm. The classic "con" or drawback is: This structure can lead to an environment where those who work within a certain functional area acquire solid intercommunication skills.
	B.	The pros are: This structure can lead to the "silo effect" where those who work within a certain functional area rarely know what is going on outside of their functional area.The classic "con" or drawback is: This structure can lead to an environment where those who work within a certain functional area acquire deep knowledge and understanding of that specific functional area.
	C.	The pros are: Each functional area of the firm is essentially a "mini" organization with a certain level of expertise and knowledge based on that function. The classic "con" or drawback is: This structure can lead to the "silo effect" where those who work within a certain functional area rarely know what is going on outside of their functional area.
	D.	The pros are: This structure can lead to effective intercommunication across the firm. The classic "con" or drawback is: This structure can lead to effective intracommunication across the firm.