Identify the advantages of the functional structure from the options given below.

(A) It leads to occupational specialisation since emphasis is placed on specific functions. This promotes efficiency in the utilisation of manpower as employees perform similar tasks within a department and are able to improve performance.
(B) It promotes control and coordination within a department because of similarity in the tasks being performed.
(C) It promotes flexibility and initiative because each unit functions as an autonomous sector, which leads to faster decision-making.
(D) It helps in increasing managerial and operational efficiency and this results in increased profit.

Choose the correct answer from the options given below:

(A), (B) and (D) only

The correct answer is Option (1) → (A), (B) and (D) only

(C) Flexibility and initiative due to autonomous units → This is an advantage of divisional structure, not functional structure.

Advantages of Functional Structure:

• (A) Occupational specialisation → Employees perform similar tasks within a department, improving efficiency.

• (B) Better control and coordination within a department → Since tasks are similar, supervision and coordination are easier.

• (D) Increased managerial and operational efficiency → Leads to better performance and higher profitability.