Advantages And Disadvantages Of Functional Organization
Functional
The functional structure focus on principles of specialization where people will be grouped in broad business activities such as marketing, production, human resources and finance. It is an organizational structure formed by grouping together all activities into functional departments and putting each department under one coordinating head. Each specialist have functional responsibility and are permitted to direct and control the salesperson through their immediate superior. Functional structure is well suited for larger organizations with diversified activities and operations that req1uire a high degree of specialization.
Advantages
Functional structures results in occupational specialization as a particular department is only concerned with one aspect of activities and workers receive the expert guidance of specialist. This promotes efficiency in utilization of members as employers performs several tasks within the department and are able to improve performance.
One of the advantages of a functional organization is that grouping employees by specialization ensures that employees are dependable and it also creates a health competent work place. This is so important for large organizations that have many functional levels within company as employers will be able to perform their duties which boost the production.
Disadvantages
In functional organization, each group perform their duties independently from other functional groups, but sometimes that can fail. As
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