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Questions
State any two disadvantage functional structure of an organisation
Explain the disadvantages of functional structure.
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Solution 1
Disadvantages of a functional structure
- Under the functional structure, every department focuses on its departmental objective instead of organisational objective
- There can be coordination problem in functional structure as different departments and exchange information coordinate with each other in order to achieve the organisational goal
Solution 2
Disadvantages of a functional structure
- Difficulty in achieving organisation’s goals: Each department becomes more specialised in their own way and less focussed on the organisation’s goals.
- Problems to coordinate: To deal with a large number of diversified activities simultaneously, a high degree of coordination is required. This coordination becomes difficult among departments.
- Inflexibility: In each department, all the employees become more specialised in one particular activity. Over the years, they become inflexible to handle the diversified activities in an organisation.
- Difficult to fix accountability: If each department focussed on their own objectives, then there is a chance of a conflict of interests. In this case, business enterprise fails to achieve the set goal and it becomes difficult to identify any particular department for accountability.
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