Functional structure is well suited for larger organizations with diversified activities and operations that req1uire a high degree of specialization. A Functional organizational structure has several advantages and disadvantages when it comes to managing projects: Advantages. Each employee will report to his direct functional manager. Features of Secondary Market. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. Benefits & Disadvantages of a Functional Organizational Structure. When employees who have similar skills and experiences are grouped together, it makes production more efficient and of a higher quality. Roles and tasks do not change very much so there is little time spent learning, and accountability is clear. face the problem of limited capabilities of a few line managers. 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. Each department is headed by an expert manager. 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 … Workers are supervised by a A functional organizational structure has a vertical and disconnected structure in which communication flows through the functional managers to the top management. Functional organization structure is optimal for small businesses or companies producing standardized goods or services. Advantages of a Functional Structure. There are several advantages of functional structure too. Organizations may choose from a number of common operating structures. The functional structure is commonly found in small companies and also in large companies with single product line or narrow product ranges. Advantages: Staff working skills can be … 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 a functional structure. The expert knowledge of the functional managers facilitates better control and supervision in the organisation. Advantages of the Functional Organizational Structure. 2. Difference between Mixed Economy and Socialism. If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training . Employees are possible to become experts. In this article, we are going to review the advantages and disadvantages of each organizational structure: Functional, Projectized, and Matrix. Advantages of Functional Organization. Employees do not report to multiple managers. ... 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. This will reduce communication channels. The executive or the team leader has the knowledge and experience of that particular field. The following are some advantages of the functional organization structure: Functional Organization Structure Main Advantages: Offers a high level of specialization. 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. 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