Functional structure

The governing concept is organising, particularly the creation of a functional structure. Organising converts plans into an arrangement of work by identifying activities, grouping similar tasks into departments, assigning duties, and establishing authority relationships. When purchasing, production, finance, or marketing activities are collected into separate departments because their work is similar, the organisation is using functional grouping. Planning determines objectives and the future course of action, directing guides and motivates employees during execution, and controlling compares actual performance with standards. Since the clue is specifically the grouping of work to form departments, option A is correct. This arrangement can improve specialisation and clarify responsibility.

The governing concept is organising. Planning specifies objectives and the course of action, but implementation requires people, materials, machines, money, information, and authority to be arranged in a suitable structure. Organising identifies activities, groups related work, assigns duties, establishes reporting relationships, and allocates the resources needed to carry out the plan. Thus, if the plan exists but resources are still unarranged, the organising function remains incomplete. Directing later guides and motivates employees, controlling measures results and corrects deviations, and staffing focuses on obtaining and placing personnel. Staffing may supply people as one resource, but the broader act of arranging all required resources belongs to organising. Therefore option A is correct.