Which organizational structure has units created for major functions of the company?

The organizational structure that features units created specifically for the major functions of the company is known as the centralized organizational structure. In this model, decision-making authority is concentrated at the top levels of management, with various departments or units organized around key functional areas such as marketing, finance, operations, and human resources. This structure enables a clear hierarchy and streamlined reporting lines, which can lead to greater efficiency and uniformity in implementing policies and procedures across the organization.

By establishing distinct functional units, a centralized structure allows for specialization within each area, promoting expertise and standardization. As a result, it can enhance coordination among departments as they all align with the broader organizational goals established by top management.

In terms of efficiency, this setup is beneficial for companies that value consistent practices and centralized control. It is particularly effective in large organizations where uniformity of processes across many locations or divisions is crucial to maintaining organizational integrity and operational effectiveness.