The advantage of functional structure are:

A. Leads to occupational specialisation

B. Promotes control and coordination

C. Increases managerial and operational efficiency

D. Makes training of employees easier

E. Facilitates expansion and growth as new division can be added without interrupting the existing operations

Choose the correct answer from the options given below :

A, B, C and D only

The correct answer is option (1)- A, B, C and D only.

A. Leads to occupational specialisation- Advantage of functional structure. Functional structure allows employees to specialize in specific roles or functions, which can lead to greater expertise and efficiency in those areas. 

B. Promotes control and coordination- Advantage of functional structure. This structure promotes centralized control and coordination within each functional department, making it easier to manage and oversee specific functions. 

C. Increases managerial and operational efficiency- Advantage of functional structure. Functional structure can lead to improved efficiency as managers and employees focus on specialized tasks within their respective departments. 

D. Makes training of employees easier- Advantage of functional structure. With clear roles and responsibilities in functional departments, training employees for their specific functions can be more focused and effective. 

E. Facilitates expansion and growth as new division can be added without interrupting the existing operations- Advantage of divisional structure. In a divisional structure, each division operates as a separate unit with its own management team, resources, and goals. This means that each division is largely independent of the others. The activities of one division do not directly affect the operations of other divisions, so when new divisions are created or added, they can be set up and operated without disrupting the existing divisions

Functional structure- 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 to offer. Some of them are as follows:

(1) 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.

(2) It promotes control and coordination within a department because of similarity in the tasks being performed.

(3) It helps in increasing managerial and operational efficiency and this results in increased profit.

(4) It leads to minimal duplication of effort which results in economies of scale and this lowers cost.

(5) It makes training of employees easier as the focus is only on a limited range of skills.

(6) It ensures that different functions get due attention.