3.1 Highlights two advantages and two disadvantages for each of the following types of organizational structures:
3.1.1. Functional structures
According T.N. Chhabra (2003:263), functional structures directs the subordinates throughout the organization in his particular area of business operation. This means that subordinates receive orders and instructions not from one superior but from several functional specialists. In other words, the subordinates are accountable to different functional specialists for the performance of different functions.
Advantages
1. Specialisation
Functional organization helps in achieving the benefits of specialization of work. Every functional incharge in an expert in his area and can thus help the subordinates in better performance in his 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
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Definition of functional structures
A functional structure is one of the most common organizational structures. Under this structure, the organization groups employees according to a specialized or similar set of roles or tasks. While functional structures operate well in stable environments where business strategies are less inclined to changes or dynamism, the level of bureaucracy makes it difficult for organizations to respond to changes in the market quickly.
Advantages of functional structures 1. Specialization
When companies use a functional organizational structure, people with similar knowledge and skills are grouped together. This makes it possible for employees to become specialists in their field. It requires a performance management system that allows for the promotion, development and visibility of individual skills within their functional area. The specialization that functional structures hone