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Functional organizational structure advantages and disadvantages which can be can be defined as “An organizational structure in which workers are distributed across departments according to areas of specialization as indicated on the organizational chart. Under functional Organizational Structure, the project manager has limitation in the amount of authority to assign work and share resources.” A functional structure divides the organization into departments based on their functions. Each is headed by a functional manager and employees are grouped according to their roles. Functional managers typically have experience in the roles they supervise. This ensures that employees are using their skills effectively. A functional structure that maximizes department expertise helps companies achieve their business objectives. Read: Advantages and disadvantages of bureaucracy
Sometimes referred to as “silos” Functional departments operate on a vertical hierarchy which means each department is vertical and disconnected from the others, and communication flows
straight up through the department heads to top management. Efficiency and specialization are two strengths of functional organizational structures. For small companies, it is recommended to only those with a limited number of products and services. In Functional organizations, the employees are mostly highly-skilled due to executing the same work over and over, which means they feature high efficiency and superior performance. Since employees are grouped in relation to their skills and experience, they gain more knowledge and expertise and become specialists, making them highly efficient and productive. Highly efficient and productive means that they will perform quickly, with less chance of error, and their output will be of high quality. Advantages of Functional Structure organizations
Disadvantages of the Functional Organizational Structure
SummaryThe functional organizational structure helps run the organization’s businesses, especially those with projects that are ongoing. Most employees tend to feel secure, perform well, and tend to be highly skilled. Project managers who have limited roles or no authority in a functional organizational structure typically do not have any role in a functional organization. Finally, Companies that are ideal to use functional organizational structure produce the same goods consistently and have routine operations. This is because a functional organizational structure has a rigid structure that provides predictable stability. An organization can adapt to any structure it requires. But If the business mainly handles projects, it will choose a project structure. Whereas an organization dealing with operations will stick with a functional structure. Similar Content:
What are the weaknesses of functional organization?Disadvantages of the Functional Organizational Structure. Boring. ... . Leads to conflicts. ... . Poor communication. ... . No sufficient cooperation. ... . Low morale. ... . Rigid. ... . A department can become too autocratic and put its goals above those of the organization as a whole. ... . Growth.. What is functional organizational structure in project management?In a functional organization structure, the organization is grouped into departments where people with similar skills are kept together in forms of groups; e.g., sales department, marketing department, finance department, etc. This helps organizations enhance the efficiencies of each functional group.
Which of the following is a disadvantage of functional project management organization?Answer and Explanation: One disadvantage of a functional organizational structure is d. It does not facilitate a straightforward approach to supervision and management.
What are the strengths and weaknesses of functional structure?Organizing a company in this way has inherent advantages and disadvantages.. Advantage: Specialization. ... . Advantage: Operational Speed. ... . Advantage: Operational Clarity. ... . Disadvantage: Segregation. ... . Disadvantage: Weakening of Common Bonds. ... . Disadvantage: Lack of Coordination. ... . Disadvantage: Territorial Disputes.. |