Business Studies

Long Answer Questions: 
What is meant by functional structure of an organisation? Explain any two of its advantages and limitations.


SOLUTION
Functional Structure:
This is the simplest & the most prevalent form of organizational structure. Functional organisational structure refers to the structure in which different departments are created on the basis of major functions performed in the organisation.

Advantages of functional structure are as follows:
1. Specialization: Under functional organisation, an employee is required to perform the same job within a department regularly. Thus, this improves the performance of the employees and leads to specialization in the organisation.
2.Coordination: Since the workers perform similar jobs, it becomes very easy to control and coordinates their activities.

Disadvantages of functional structure are as under:
1. Hindrance in Organisational Objectives: Under functional structure, more emphasis is given on achieving of departmental objectives rather than the overall organisational objectives. Such a practice leads to functional empires and places hindrance in the interaction between two or more departments. Hence, organisational objectives may not get achieved.
2. Ineffective Coordination: Establishing coordination in functionally differentiated departments becomes very difficult.
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Subjective Medium Published on 18th 09, 2020
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