• The functional structure consists of a chief
executive officer and limited corporate staff, with
functional line managers in dominant org.l areas
such as production, a/cing, mktg, R&D,
engineering and HR.
• This structure allows for functional specialization,
thereby facilitating active sharing of knowledge
within each functional area.
• Knowledge sharing facilitates career paths as well
as the professional development of functional
Advantages of Functional Organization
1. Specialization: functional org helps in achieving the
benefits of specialization of work. Every functional
incharge is an expert in his / her area and can help the
subordinates towards better performance in his/her
2. Executive Development: a functional manager is
required to have expertise in one function only. This
makes it easy to develop the executives.
3. Reduction of Workload: Functional org reduces the
burden on the top executives. There is joint
supervision in the organization. And every functional
in charge looks after his/her functional area only.
4. Scope of Expansion: Functional Org offers a greater scope
for expansion as compared to line org. it does not face the
problem of limited capabilities of a few line managers.
5. Better Control: the expert knowledge of the functional
managers facilitates better control and supervision in the
org., becz the use of specialists help in controlling the
waste of materials, money and time. The consolidation of
activities leads to optimum use of facilities.
6. Flexibility: it allows changes in org without disturbing the
whole work. The span of supervision can also be adjusted
according to the requirements.
7. Better Supervision: every superior is an expert in his
own area and he will be successful in making proper
planning and execution. The superior, being well
acquainted with the work, will be able to improve the
level of supervision.
8. Democratic Control: this type of org eliminates one
man control. There will be a joint control and
supervision in the org. this boosts the morale of
emp.es and also enthuses a sense of cooperation
among them. The democratic approach encourages,
motivates workers to go deep into their work and make
suggestions for work improvement.
Disadvantages/Demerits of Functional
Violates the pl of unity of command since a subordinate is a/cble
to a large number of superiors. Every superior considers his/her
work important and wants the workers to give top priority to
his/her work. The workers feel confused and are unable to decide
about the priorities of their work.
Too complicated and difficult for the workers to understand.
Workers are supervised by number of superiors and this creates
confusion in the org.
It creates too many specialists. This creates the problem of
Difficult in fixing the responsibility: since there is no unity of
command, it becomes difficult to find the responsibility for
slowness/ faults in work.
Delay in decision making since it involves more than one person
which slows down the process.