Final answer:
The statement given in the question is true. As companies and their industries mature, the need for efficiency and centralized control often leads to the replacement of functional structures with multidivisional structures.
Step-by-step explanation:
The statement given in the question is true.
As companies and their industries mature, the need for efficiency and centralized control often leads to the replacement of functional structures with multidivisional structures.
In a functional structure, employees are grouped based on their functions or departments, such as marketing, finance, or operations. This structure works well in small organizations with a single product or service line.
However, as companies grow and diversify, the functional structure may become less efficient. Multidivisional structures, on the other hand, divide the organization into semi-autonomous divisions based on products, geographic locations, or customer segments. Each division has its own functional departments, allowing for greater control and specialization.
Overall, the transition from functional structures to multidivisional structures is a common response to the changing needs of mature companies.