CAPM (Certified Associate in Project Management) Practice Exam

What characterizes a functional organization?

1. A structure where each employee has multiple superiors and varied responsibilities

2. A hierarchy where each employee reports to a single superior and staff are grouped by specialty

3. An organization without a defined structure, focusing instead on project-based tasks

4. A flat organizational structure with little to no hierarchy

The correct answer is: A hierarchy where each employee reports to a single superior and staff are grouped by specialty

A functional organization is characterized by a hierarchy where each employee reports to a single superior and staff are grouped by specialty. This structure emphasizes clear reporting relationships and specialization in functional areas. Option A is incorrect as it describes a matrix organization where employees have multiple superiors and varied responsibilities. Option C is incorrect as it describes a projectized organization where the focus is on project-based tasks rather than a defined structure. Option D is incorrect as it describes a flat organizational structure with minimal hierarchy, which is not typically seen in a functional organization.