Question

State any six advantages of functional structure of organization.

Answer 1

Following are the advantages of functional structure of organization:

1. Specialisation: Each department focusses on a certain function, resulting in expertise and efficiency.
2. Operational efficiency: Work is divided according to skills, which improves productivity and reduces errors, resulting in an increase in profits.
3. Better control and coordination: Similar activities are grouped into one department, allowing for easier supervision and management.
4. More attention to different functions: Under the functional structure, each function is given the attention it deserves.
5. Minimum duplication: This results in economies of scale and lowering cost.
6. Effective training: A training focuses on a certain area, allowing the employee to become more professional.