Question

State three advantages of the functional structure not discussed in the given case.

Hint:

Functional structure leads to cost savings due to the elimination of redundant roles. It ensures that top management can clearly assign responsibility to functional heads. It is best for firms that require deep technical or professional expertise.

Answer 1

Step 1: Identify the concept being tested.
The question asks for three advantages of a functional structure that were not already covered in the earlier part of the case, which had mentioned manpower efficiency and increasing profit.
Step 2: Explain the concept.
A functional structure groups similar tasks together under one department head, and this grouping brings several benefits beyond the ones already stated in the case.
Step 3: State three fresh advantages.
First, functional specialisation, since employees focus only on their area of expertise and become experts at it. Second, better control and coordination, because it is easier for one head to supervise people doing similar, related work. Third, avoidance of duplication of effort, as each activity is handled by only one department instead of being spread across many.
Step 4: Final answer.
Three additional advantages of the functional structure are functional specialisation of employees, better control and coordination within each department, and avoidance of duplication of work.