Which of the following are advantages of functional structure of an organisation?

(A) Leads to occupational specialisation.
(B) Places less emphasis on organisational objectives.
(C) Promotes coordination and control within a department
(D) Increases operational efficiency.

Choose the correct answer from the options given below:

(A), (C) and (D) only

The correct answer is Option (3) → (A), (C) and (D) only.

* Statement A, C & D are true as they are advantage of functional structure. Statement B is wrong as this statement is related with disadvantage of functional structure not advantage.

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.