The following are some advantages of the functional organization structure: face the problem of limited capabilities of a few line managers. 2. In this article, we are going to review the advantages and disadvantages of each organizational structure: Functional, Projectized, and Matrix. If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training . Firstly, when the specialist workers of a particular field are in a group together in a functional division, there are high chances that the function will be successful and the organization will be successful, ultimately. Each department is headed by an expert manager. Workers are supervised by a Functional organization structure is optimal for small businesses or companies producing standardized goods or services. Advantages of Functional Organization. There are several advantages of functional structure too. A functional organizational structure has a vertical and disconnected structure in which communication flows through the functional managers to the top management. When employees who have similar skills and experiences are grouped together, it makes production more efficient and of a higher quality. For example, the person heading the IT department will have the education and skill necessary to shoulder this … The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. ... functional organization has both advantages as well disadvantages and any company thinking of adopting this type of structure should carefully analyze both the aspects and then take the decision. Demerits The demerits of functional organisation are as follows: (1) Confusion—The operation of functional organisation is too complicated. Advantages of a Functional Structure. This will reduce communication channels. The following are the advantages of functional organisation structure: (1) Benefits of Specialisation: The whole company is divided into many departments on the basis of major activities to be performed. Each employee will report to his direct functional manager. Employees are possible to become experts. Functional Organization Structure Main Advantages: Offers a high level of specialization. Features of Secondary Market. Functional structure is well suited for larger organizations with diversified activities and operations that req1uire a high degree of specialization. Difference between Mixed Economy and Socialism. Advantages of a functional structure. Structure of Organization; Advantages of Functional Organizational Structure. Staff working skills can be … The expert knowledge of the functional managers facilitates better control and supervision in the organisation. Functional Structure: Under the functional structure, the organisation is designed on the basis of the basic functions, namely, production, finance and accounting, marketing and personnel. This results in more and better work being accomplished in much lesser time. Benefits & Disadvantages of a Functional Organizational Structure. Advantages: Advantages of the Functional Organizational Structure. The functional structure is commonly found in small companies and also in large companies with single product line or narrow product ranges. A Functional organizational structure has several advantages and disadvantages when it comes to managing projects: Advantages. The executive or the team leader has the knowledge and experience of that particular field. Organizations may choose from a number of common operating structures. Employees do not report to multiple managers. Roles and tasks do not change very much so there is little time spent learning, and accountability is clear. 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