Identify the advantages of functional structure.
A. Makes training of employees easier as the focus is only on a limited range of skills.
B. Promotes efficiency in utilisation of manpower as employees perform similar tasks within a department and are able to improve performance.
C. Ensures that different functions get due attention.
D. The structure places less emphasis on overall enterprise objectives than the objectives pursued by a functional head.
E. Leads to minimum duplication of efforts and is economical also.
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- A, B, C & E Only.
Grouping of jobs of similar nature under functional and organising these major functions as separate departments creates a functional structure. All departments report to a coordinating head. The functional structure has many advantages which are as follows:
- A functional structure leads to occupational specialisation since emphasis is placed on specific functions. This promotes efficiency in utilisation of manpower as employees perform similar tasks within a department and are able to improve performance.
- It promotes control and coordination within a department because of similarity in the tasks being performed.
- It helps in increasing managerial and operational efficiency and this results in increased profit.
- It leads to minimal duplication of effort which results in economies of scale and this lowers cost.
- It makes training of employees easier as the focus is only on a limited range of skills.
- It ensures that different functions get due attention