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Advantages of the Functional Organizational Structure. A functional organizational structure has a vertical and disconnected structure in which communication flows through the functional managers to the top management. Firstly, when the specialist workers of a particular field are in a group together in a functional division, there are high chances that the function will be successful and the organization will be successful, ultimately. A Functional organizational structure has several advantages and disadvantages when it comes to managing projects: Advantages. 2. Employees do not report to multiple managers. Demerits The demerits of functional organisation are as follows: (1) Confusion—The operation of functional organisation is too complicated. Organizations may choose from a number of common operating structures. Employees are possible to become experts. 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. The following are some advantages of the functional organization structure: Roles and tasks do not change very much so there is little time spent learning, and accountability is clear. The functional structure is commonly found in small companies and also in large companies with single product line or narrow product ranges. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. Advantages: 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. Advantages of Functional Organization. ... functional organization has both advantages as well disadvantages and any company thinking of adopting this type of structure should carefully analyze both the aspects and then take the decision. Workers are supervised by a Each department is headed by an expert manager. Difference between Mixed Economy and Socialism. The expert knowledge of the functional managers facilitates better control and supervision in the organisation. In this article, we are going to review the advantages and disadvantages of each organizational structure: Functional, Projectized, and Matrix. Advantages of a Functional Structure. Advantages of a functional structure. Functional Organization Structure Main Advantages: Offers a high level of specialization. Functional organization structure is optimal for small businesses or companies producing standardized goods or services. This will reduce communication channels. The executive or the team leader has the knowledge and experience of that particular field. Each employee will report to his direct functional manager. Staff working skills can be … Features of Secondary Market. Structure of Organization; Advantages of Functional Organizational Structure. There are several advantages of functional structure too. Functional structure is well suited for larger organizations with diversified activities and operations that req1uire a high degree of specialization. This results in more and better work being accomplished in much lesser time. For example, the person heading the IT department will have the education and skill necessary to shoulder this … face the problem of limited capabilities of a few line managers. Benefits & Disadvantages of a Functional Organizational Structure. 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