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The organizational structure could group those who work in a specific department together, or the grouping could be based on those who work in a functional area such as finance or marketing. 1. Management layers characterize bureaucratic organizations. 7. Exhibit 10.9 (b) illustrates a combination structure. 3. Functional Structure. This results in more and better work being accomplished in much lesser time. It creates a defined structure for communication. Advantages: 1. Each group of specialists can therefore operate independently with management acting as the point of cross-communication between functional areas. If you’ve had a job, you likely worked in a functional organizational structure. 1. This is the simplest & the most prevalent form of organizational structure. Functional Structure: Under the functional structure, the organisation is designed on the basis of the basic functions, namely, production, finance and accounting, marketing and personnel. Let’s try to clear ideas by listing the advantages and disadvantages of this organization. Adaptability and flexibility in divisions. Benefit of Specialization. A functional organizational structure is the most common of the three organizational structures adopted by most companies. Disadvantages: 1. section 3, advantages of functional structure will be discussed, in section 4, challenges of functional structure and operational issues. Every organization functions on some basic principles and a particular structure. There are three common organizational structures, and project managers work in all of them: functional, project, and matrix. Types of Organizational Structures Functional. Merits of functional organization: The following are the merits of functional organization. Advantages of the hierarchical organizational structure are many, the most impelling of which is that your employees will have clearly defined roles and responsibilities, and a sense purpose in accomplishing those roles. Functional Structure The functional structure in the firm’s organizational structure divides different functions into different groups such as the marketing department, finance department and human resources department. Appropriateness II. Remedies of functional and operational issues will make up section 5 while the paper ends in section 6 conclusion. Functional organization structure Functional organization in one form or the other exists in all business concerns, particularly at the top. Describe the advantages and disadvantages of functional, projectized, and matrixed organizational structures. Functional organization structure is suitable for small as well as those entities that offer one type of services or products regularly; for example, medical clinics, car-repairing shops, hotels, and restaurants. The functional structure is based on an organization being divided up into smaller groups with specific tasks or roles. Hierarchical structure of an organization usually has vertical levels leading up to the top head – the CEO or Managing director. Divisional Structure. Functional Structure: . Functional structure divides the organization based on specialized functional areas such as production, marketing, and sales for the purpose of management. While it has its advantages, it also has a few disadvantages. In the functional structure, such as shown in the following Facebook organizational chart, functions are separated into different groups, resulting in some defects.Here are the major disadvantages you must consider: Create Your Own Org Charts! Hybrid Organisational Structure: Exhibit 10.9 (a) illustrates the hybrid organisational structure. Employees in entry-level positions would receive their daily assignments from their direct supervisor. Advantages of a Functional Structure. The term organizational structure refers to how the people in an organization are grouped and to whom they report. Advantages & Disadvantages of Bureaucratic Organizational Structure. As long as […] Functional organisational structure refers to the structure in which different departments are created on the basis of major functions performed in the organisation. The advantages of a functional organizational structure. 2. Advantages of the Functional Organizational Structure. Though the functional organizational structure gives employees a sense of belonging within each departmental area, the structure creates space between departments. Functional departments arguably permit greater operational efficiency because employees with shared skills and knowledge are grouped together by functions performed. The following are a few benefits of the functional organizational structure: Employees are grouped by their knowledge and skills, allowing them to achieve high performance. Let's take a look at the advantages and disadvantages of each so you know what you're up against when you join a new structure. The advantages of functional organization structure Lauren Nelson - Updated April 17, 2017 Every business or organisation is structured differently, depending on its needs and goals. The organizational structure determines how the organization performs or operates. Despite the advantages of the functional organizational structure, it can also twist the fundamental process and decision flow within a business, with the following results: Fast growth. One advantage of this sort of flatter hierarchy is that it is easier for employees to communicate with each other and it facilitates learning. These "tall" organizations are the most traditional organizational structure. This is the capacity to move from centralized bureaucratic structures to interrelated but … It will lead to poor communication and coordination across functional … A functional organizational structure has a vertical and disconnected structure in which communication flows through the functional managers to the top management. Complexity: Matrix structure is complex in nature due to the combination of two organizational structures: Functional structure is simple and convenient to manage. The following are the advantages of functional organisation structure: (1) Benefits of Specialisation: The whole company is divided into many departments on the basis of major activities to be performed. 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