Functional Aspects of

Structure

• The functional structure consists of a chief executive officer and limited corporate staff, with functional line managers in dominant org.l areas such as production, a/cing, mktg, R&D, engineering and HR.

• This structure allows for functional specialization, thereby facilitating active sharing of knowledge within each functional area.

• Knowledge sharing facilitates career paths as well as the professional development of functional specialists.

Advantages of Functional Organization

1. Specialization: functional org helps in achieving the benefits of specialization of work. Every functional incharge is an expert in his / her area and can help the subordinates towards better performance in his/her area.

2. Executive Development: a functional manager is required to have expertise in one function only. This makes it easy to develop the executives.

3. Reduction of Workload: Functional org reduces the burden on the top executives. There is joint supervision in the organization. And every functional in charge looks after his/her functional area only.

4. Scope of Expansion: Functional Org offers a greater scope for expansion as compared to line org. it does not face the problem of limited capabilities of a few line managers.

5. Better Control: the expert knowledge of the functional managers facilitates better control and supervision in the org., becz the use of specialists help in controlling the waste of materials, money and time. The consolidation of activities leads to optimum use of facilities.

6. Flexibility: it allows changes in org without disturbing the whole work. The span of supervision can also be adjusted according to the requirements.

7. Better Supervision: every superior is an expert in his own area and he will be successful in making proper planning and execution. The superior, being well acquainted with the work, will be able to improve the level of supervision.

8. Democratic Control: this type of org eliminates one man control. There will be a joint control and supervision in the org. this boosts the morale of emp.es and also enthuses a sense of cooperation among them. The democratic approach encourages, motivates workers to go deep into their work and make suggestions for work improvement.

Disadvantages/Demerits of Functional Organization

1. Violates the pl of unity of command since a subordinate is a/cble to a large number of superiors. Every superior considers his/her work important and wants the workers to give top priority to his/her work. The workers feel confused and are unable to decide about the priorities of their work.

2. Too complicated and difficult for the workers to understand. Workers are supervised by number of superiors and this creates confusion in the org.

3. It creates too many specialists. This creates the problem of coordination.4. Difficult in fixing the responsibility: since there is no unity of command, it

becomes difficult to find the responsibility for slowness/ faults in work.5. Delay in decision making since it involves more than one person which

slows down the process.