Advantages Of Functional Organizational Structure

When staff Specialists are incorporated into the organization and are placed upon the same (line) Authoritative level equally the line executives. This type of structure is called a functional organizational structure or line and functional organization.

In this type of organization, the accent is on managing some functions wherever the function may exist performed in the enterprise.

For example, the total piece of work activities of an enterprise may be divided into various functions like purchases, product, marketing, finance, quality control.

One manager would be responsible for each of these functions separately, which means that the finance director would be responsible for financial activities and would have direct command over all such activities carried out in the enterprise.

He will have an official command or formal power finance function and perform it.

Wherever The function of the person may be located in the enterprise. This is a functional organizational structure chart.

sample functional organizational structure chart

Functional authority occupies a Midway position betwixt 'line authority' and 'finish advice'. It is a means of putting the specialists in top postings throughout the enterprise.

It confers upon the holder an unlimited power of control over the people of other departments concerning their function.

Part authority remains confined to functional guidance to different departments.

It helps in maintaining power and uniformity in the performance of functional areas throughout the Enterprise.

Advantages of Functional Organizational Structure

Following are the important advantages of functional organizational structure:

1. Specialization

The functional organizational structure helps in achieving the benefits of specialization of work.

Every functional in accuse is an adept in his expanse and can assist the subordinate to perform better in his area.

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2. Production of Workload

Information technology reduces the brunt on the top executives.

There is pointed supervision in the enterprise, and every function in accuse looks later on his functional expanse only.

three. Executive Development

A functional manager is required to accept expertise in i part but.

This facilitates improve executive development. (functional organizational structure)

4. Scope of Expansion

Information technology offers greater scope for expansion as compared to line Organisation.

Information technology does not face the problem of Limited capabilities of a few line managers.

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5. More Efficiency

Information technology creates a loftier caste of efficiency as the groups of employees and the functional heads perform their Express and specialized operations.

Thus, Thereby bringing expertise in performance and reduction in costs.

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six. Better Control

The skillful noesis of the functional managers facilitates better command and supervision in the Enterprise.

Disadvantages of Functional Organizational Structure

Following are the disadvantages of functional organizational construction:

1. Complexity

The operation of the functional organizational construction is, complicated and is not hands understood due to its various technicalities. Workers are surprised past a number of instructions from unlike functional Heads.

Thus, The employees in purchase functions are restricted in several ways past the fiscal manager and quality control managing director also.

This creates confusion in the Enterprise.

2. Dual command

It violates the principles of unity of command since a person is accountable for more than ane bosses.

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iii. Limited Perspective

A functional director tends to create boundaries around himself and thinks only in terms of his own department rather than the whole enterprise.

This results in a loss of overall perspective in dealing with business problems.

4. Filibuster in Determination Making

At that place is a general lack of coordination among the functional executives which causes the delay in decision making. When a determination trouble requires the involvement of more than than one specialist.

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v. Trouble of Succession

The functional organizational structure develops specialists rather than generalists.

This may create the problem of succession in top executives.

On the whole, This type of organization has been quite successfully followed in an enterprise similar banks, insurance companies. For the division of piece of work into various departments.

But for the division of work within the departments themselves, The construction has not been establish to be very successful mainly because there is no clear line of authority.

Thus, Now you understood the concept of advantages and disadvantages of functional organizational construction.