Certification in Supplier Diversity Practice Exam

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What is a primary advantage of a functional organization?

Easy adaptation to changes in the market
Efficient use of specialized resources
Best suited for large organizations with diverse products
Fosters independence among departments

The correct answer is: Efficient use of specialized resources

A primary advantage of a functional organization lies in its ability to achieve efficient use of specialized resources. In this structure, tasks are grouped based on function or specialty, such as marketing, finance, and production. This allows employees to focus on their specific areas of expertise, leading to improved productivity and higher quality work. Specialization fosters skill development, enabling teams to work more effectively and streamlining processes, as resources can be utilized more efficiently when individuals are experts in their respective fields. This organizational framework is particularly beneficial in environments where tasks require a high level of technical skill or expertise. By concentrating similar roles within departments, organizations can avoid redundancy and optimize the use of resources, resulting in increased efficiency overall.