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State Any Two Disadvantage Functional Structure of an Organisation - CBSE (Commerce) Class 12 - Business Studies

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State any two disadvantage functional structure of an organisation

Explain any four disadvantages of functional structure.

Solution 1

Disadvantages of a functional structure

1) Under the functional structure, every department focuses on its departmental objective instead of organisational objective

2) 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

1) Difficulty in achieving organisation’s goals: Each department becomes more specialised in their own way and less focussed on the organisation’s goals.

2) 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.

3) 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.

4) 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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Solution State Any Two Disadvantage Functional Structure of an Organisation Concept: Structure of Organisation.
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