Employees feel secure; they perform wel… The last advantage of Functional organizations is that they define clear career paths for the staff. As such, individuals attaining a supervisory role are more likely to have had experience in the tasks they are evaluating their employees on. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Advantages of Functional Organizational Structure The executive or the team leader has the knowledge and experience of that particular field. Advantages and Disadvantages of Committee Organisation. 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 main advantage of a functional organization is that it has a a very concrete chain of command. While people will still have differing perspectives under functional structures, similar professional and educational backgrounds offer more common ground than not, theoretically making the decision-making process much easier to navigate. As the saying goes, steel sharpens steel, and coworkers in a functional structure can sharpen each other's skills. In this article, we discuss the advantages and disadvantages of the functional structure, plus learn about other organizational structures in business. The hierarchical structure makes it easy to identify promotional paths for employees, providing an additional motivating factor for the workers. The advantages are: Efficiencies. Because a functional structure groups people performing similar tasks that require certain skills, more experienced or talented group members serve as examples and mentors to individuals with less experience. After reading this article you will learn about the advantages and disadvantages of different types of organisation:- 1. The matrix structure is a type of organizational structure in which individuals are … Equal Weight age to All Functions: It ensures that all the functions/activities get equal weight age. This leads to continuous growth and development within the organization from simple day to day interaction, instead of having to rely on specialized seminars or workshops to improve the quality of work coming out of a department. Functional Organization Structure Main Advantages: Offers a high level of specialization. Their roles and responsibilities are fixed, facilitating easy accountability for the work. For example, a photo department and graphic design department may fall under the purview of a visual arts department under the purview of a marketing department within a larger corporation. Roles and tasks do not change very much so there is little time spent learning, and accountability is clear. Of the following advantages, the first one is the most important; the functional structure can introduce a great deal of efficiency into the operations of a business. Advantages of Functional Organization: Functional organization has the following advantages: 1. There is easy accountability for each employee and thus employees get their reward through a fair and just practice. 1. Remedies of functional and operational issues will make up section 5 while the paper ends in section 6 conclusion. Within the pyramid, departments are assigned with clear roles, responsibilities, and goals. Employees are possible to become experts. Employees are grouped by their knowledge and skills, allowing them to achieve high performance. Because everyone in a functional structure is operating in an area of expertise with peers of similar expertise, their contributions to the overall goals of a company or organization will be more specialized. Lumen Learning: Common Organizational Structures, UpCounsel: Functional Organizational Structure: Everything You Need to Know, AccountingTools: Functional Organizational Structure. Functional Organization The advantages of Functional Organization: The team is managed by an experienced person with a high ability and skills who can adequately understand and review the entire work. Advantages of Centralization. Advantages of Functional Organizational Structure The employees are made into groups according to their skills, and thus the overall effectiveness and efficiency of the tasks increase. Easy Org Chart Creator – Powerful & Economic Choice for Your Business, Org Chart Template: Essential Ones for Your Work, Org Chart Software: The Ultimate Guide for You, Dropbox Business Org Chart: Check the Magic Figures. ” Projectized Organization “ Nowadays, many organizations operate in an effective environment that they tend to focus on the outcomes of the project by using different management approaches. 3. This gives them better insight and credibility when they make their evaluations, and can allow them to offer more constructive feedback because they have a firsthand understanding of the jobs the individuals being evaluated are performing.