Question

What is meant by 'functional structure' of an organization? State any two advantages.

Answer 1

Functional Organization : ... This is where the organization is divided into smaller groups based on its special functions such as IT, finance or marketing. This departmentalization allows greater operational efficiency because theemployees have their skills and knowledge to be shared within thegroup.Advantages of a functional structure. Functional structure arguably achieves greater operational efficiencies, as employees with shared skills and knowledge work together and perform similar functions. The advantages of this type of structure are: specialisation - departments focus on one area of work.
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Answer 2

A functional organizational structure is the most common of the three organizational structures adopted by most companies. Companies organized by function group employees according to their activities in the organization. ... Organizing a company in this way has inherent advantages and disadvantages.