Append below describes the advantages and disadvantages of the following type of organization structure:
· Functional Structure
· Functional structures typically work well for smaller and less complex organizations dealing with only one or a few products or services.
· Also work best in relatively stable environments that allow organizations to pursue consistent strategies.
Major Advantages of Functional Structure:
The major potential advantages include:
· economies of scale with efficient use of resources
· task assignments consistent with technical training
· high quality technical problem solving
· in-depth training and skill development within functions
· clear cut career paths within functions
Major Disadvantages of Functional Structure:
· poor communication and coordination across functions,
· having too many decisions referred upward in the hierarchy,
· a loss of clear responsibility for product or service delivery, and slow innovation in response to environmental changes.
· One of the most serious disadvantages occurs when members of functional departments become overspecialized, develop self-centered, narrow viewpoints, and lose the total system perspective.
· Failure to communicate and extend support across department lines is common in such situations. This often slows decision making because problems must be referred up the hierarchy for resolution