Question

‘The functional structure of organisation has certain advantages and disadvantages which an enterprise must take into consideration before adopting it.’ Explain any such three advantages and any three disadvantages of this structure.

Answer 1

Advantages of Functional Structure:
(a) Leads to occupational specialisation
(b) Promotes control and coordination
(c) Increases efficiency
(d) Low cost
(e) Makes training easier
(f) Due attention to different functions

Disadvantages of Functional structure are:
(a) Creation of functional empires
(b) Problems in coordination

(c) Inter-departmental conflicts
(d) Lack of accountability
(e) Inflexibility
(f) Restriction in managerial development.