The organizational structure can be classified under following two types: ADVERTISEMENTS: 1. 3. This will reduce communication channels. Another disadvantage of the functional organization is that if some work requires the intervention of two departments then it may be delayed due to lack of coordination between the departments which in turn will lead to the company losing its competitiveness with respect to competitors. Divisional heads are accountable for profits, as revenues and costs related to different departments can be easily identified and assigned to them. Functional organizational structure advantages and disadvantages. I personally don't think a functional organizational structure is ideal for project managers - better go with a matrix organization. The Disadvantages of Team-Based Organizational Structure. The full-stewardship principle lies at the heart of the functional organization structure. Advantages and Disadvantages of the Functional Organization Structure. The key emphasis inP3 is matching structure with strategy. The hierarchy is clear. Advantages And Disadvantages Of A Functional Organizational Structure 757 Words 4 Pages A functional organization structure is a hierarchical type of organization structure wherein people are grouped as per their area of specialization. Another benefit of the functional organization is that it enables management to segregate work according to functions and thus avoid any duplication of work and also management can allocate the work to the concerned department quickly due to functional specialization. The big advantage of fMRI is that it doesn't use radiation like X-rays, computed tomography (CT) and positron emission tomography (PET) scans.If done correctly, fMRI has virtually no risks. The biggest disadvantage of functional organization is that since various departments are segregated on the basis of functions there is no scope of employees of one department helping or meeting the other department employees and hence in a way there are many companies in the form of departments within the company and each department is having separate goal instead of one common goal which can be harmful for the progress of the company in the long run. Functional structures are usually found in smaller organisations,or within individual divisions in a larger organisation with adivisional structure. (All India 2011) Ans. Providers for Skill Development. They may want different things and want to achieve different objectives and thus can hinder each other’s growth. So, for example, a normal person is likely to take more time in taking the decision regarding finance related matter than a financial analyst handling the finance department. Learn new and interesting things. (a) Advantages. What is a functional structure? If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training . disadvantages of functional strategy ... Matrix structure advantages-Facilitates the use of specialized personnel, equipment and facilities ... -achieves "best in class" performance-leverages core competencies by outsourcing-encourages info. The Functional Organization Structure can be successfully applied in many areas. Employment of outsourcing strategies along with contacting out specialized … In the long term, employees tend to feel bored and the monotony of the job can be off-putting. Functional programming is a programming paradigm in which we try to bind everything in pure mathematical functions style. The specialisation, which comes out due to division of work here is based on occupation/ job/activity. There are certain advantages and disadvantages of this structure which are given below: Advantages of Functional Structure: When the specialists are grouped together than it would result in the economies of scale and it definitely minimizes the duplication of equipment. A manufacturing business with a functional structure has recently developed three new product lines. The first and foremost advantage of functional organization is that of specialization because since each department is created according to specialization there is that security that whichever task is assigned to any functional department it will be done in professional manner as it is done by the specialist so for example if there was no functional organization and some problem related to IT came in the company then the whole company would have been confused and disturbed regarding how and by whom the problem will be solved. A functional organizational structure is one of several reporting structures a company could implement. Another disadvantage of functional organization structure is that these functional groups may not be able to communicate more often which decreases flexibility and innovation. Specialisation; Easy supervision; Easy co-ordination; It helps in increasing managerial efficiency; Effective training (b) Disadvantages. It will lead to poor communication and coordination across functional … In a team-based organizational structure, employees are set up in work groups or teams that collaborate on projects or tasks. Virtual B. Difference between Mixed Economy and Socialism, Advantages and Disadvantages of Bill Discounting, Advantages and Disadvantages of Convertible Bond, Difference between Capital and Money Market, Precautions to take Before Investing in Stock Market. Performing the instructions of the authorities within its competence is mandatory for all the units. 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