Which statement describes a disadvantage of functional grouping?

• A. The organisation can grow large and inefficient to manage
• B. The organisation can communicate rapidly across all departments
• C. Centralised management reduces duplication
• D. The department's objectives are always aligned with the organisation

Answer: (A)

Grouping by function creates silos that hinder cross-department coordination as the organisation grows. When departments like marketing, finance, and HR each focus on their own priorities, communication across areas becomes slower and more steps are needed to align actions with overall goals. This can lead to bureaucracy, duplicative work, and inefficiencies as the organisation expands, which is why this structure is often described as potentially inefficient at larger scales. The idea that communication across all departments would happen rapidly is unlikely in a functional setup, and centralised management reducing duplication is typically a benefit rather than a drawback. Likewise, department objectives are not inherently guaranteed to stay perfectly aligned with the organisation’s broader aims.