Basically a functional organizational structure is the one in which the people are grouped on the basis of their common expertise or experiences or because they use the same resources. There are a number of advantages of functional structure like the first advantage is that since the people are arranged on the basis of their common interests therefore, they can learn a lot from each other. Secondly, problem solving becomes easier in a functional organizational structure. Thirdly, skilled employees of the same group can find more skilled employees for the company. Fourthly, control in functional structure is increased because people will try to supervise each other work. Moreover, team work is more found in a functional organizational structure which is also one of the benefits of this structure.
Functional structure also has some disadvantages like in this structure the need of the organization of its growing product line is strained because skills and abilities of employees are narrowed. Secondly, communication problems can increase because the interaction between various departments is decreased. Thirdly, measurement problems are created like it becomes difficult to analyze which person is more efficient and which is not. Thirdly, strategic problems are not given significant focus in this structure because the top management is always busy in finding the solutions of coordination problems.
Functional structure also has some disadvantages like in this structure the need of the organization of its growing product line is strained because skills and abilities of employees are narrowed. Secondly, communication problems can increase because the interaction between various departments is decreased. Thirdly, measurement problems are created like it becomes difficult to analyze which person is more efficient and which is not. Thirdly, strategic problems are not given significant focus in this structure because the top management is always busy in finding the solutions of coordination problems.