Question

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. (A), (B), and (C) only
• B. (A), (B) only
• C. (A), (C), and (D) only
• D. (C) and (D) only

Answer 1

The Correct Option is C

A functional organizational structure divides a company into departments by specialized functions like marketing, finance, and production. We will now assess each statement to determine which represent advantages of this structure:

1. (A) Fosters occupational specialization: Departments in a functional structure concentrate on their specific domains, resulting in a high level of occupational specialization. This is beneficial as it enables employees to cultivate deeper skills and expertise.
2. (B) Diminishes focus on organizational objectives: This is generally not considered an advantage. It is often viewed as a potential disadvantage because departments may prioritize their own goals over the overarching organizational objectives.
3. (C) Enhances coordination and control within a department: In a functional structure, all members of a department share similar objectives and utilize comparable resources, which typically improves coordination and control, thereby presenting an advantage.
4. (D) Boosts operational efficiency: By consolidating employees based on their functional roles, a functional structure can elevate operational efficiency through specialized workflows and improved productivity.

Following this analysis, statements (A), (C), and (D) are identified as advantages of a functional structure.

Therefore, the correct response is: (A), (C), and (D) only