Advantages and Disadvantages of Functional Organization

Advantages of Functional Organization

  1. Specialization- Functional organization  promotes  logical division of work.  Every  function head is an expect in   his area and all workers get the the benefits of his experience.              
  2. Reduction of work load– Every functional heads looks after one function only and therefore  burden on top executives is reduced.           
  3. Better control– Our man control is done away with and there is joint supervision of work.  As a result,  control becomes more  effective.                    
  4. Easier  staffing– Recruitment, selection and training of managers    are  simplified because  each indiviual is required to have knowledge of one functionalarea only.  
  5. Scope for expansion– The success and growth of the organization is not limited to the capabilities of a few line managers. 

You May Also Like To Read: Merits and Demerits of Line Organization

Disadvantages of Functional Organization

  1. Double command  –  A person is accountable to several superiors .  As  a result, his responsibility and loyalty  get divided.

  2. Complexity – There are many  cross relationships which creat confusion.  A worker may  receive conflictng orders.

  3. Delay in decision making – A decision problem requires  the involvement of several specialise.   Therefore , decision making process in functional organization is slow.

  4. Problem of succession –  Executive at the lower level do not get opertunity of all round experience.  This may creat problem in succession to top executive positions.

  5. Lack of coordination –  A functional managers tends to have a limited perspective.  He thinks only in terms of his own department rather them of the  whole  enterprise

Advantages and Disadvantages of Functional Organization 

Advantages and Disadvantages of Functional Organization Advantages and Disadvantages of Functional Organization 

By Hassham

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