Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 93
A small software development firm designs and produces custom applications for businesses. The application development team consists of employees from multiple departments who all report to a single project manager.
Which of the following organizational structures does this situation represent?
Answer options
- A. Functional departmentalization.
- B. Product departmentalization.
- C. Matrix organization.
- D. Divisional organization.
Correct answer: A
Explanation
The correct answer is A, as the scenario describes a structure where employees from different departments work together under a single project manager, typical of functional departmentalization. The other options like product and divisional organizational structures do not fit, as they usually involve grouping by product lines or divisions rather than integrating multiple departments under one manager.