Explain the concept of ‘Functional Structure’. Also, explain three disadvantages of functional structure.

Functional structure refers to the division of the whole enterprise according to the major functions to be performed by it. This is the simplest and the most prevalent form of organizational structure. Under this all the functions of similar nature are divided in different units which are called departments. Its disadvantages are:

Ignorance of organizational objectives: Each departmental head will work according to his sweet will. They always give more importance to their department objectives. Hence organisational objectives suffer.
Difficulty in interdepartmental coordination: All departmental heads may work as per their own wish. No doubt this facilitates coordination within the department but it makes interdepartmental coordination difficult.
Conflict of interest: Every departmental head wants to become a functional empire. To satisfy their ego, everyone demands maximum resources in their department. This situation leads to conflicts among different departmental heads.
Hurdle incomplete development: This system is a hurdle in the way of the complete development of the employees. Each employee specializes only in a small part of the whole job.

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150 employees are working in a handloom company. There is the pre defined arrangement of responsibility, authority and accountability in the company. As a result, the employees have hardly any doubt about their roles in the company. But the employees of the Marketing Department of the company are always very unhappy with a problem. The problem is that several times they get orders from two officers simultaneously. The two officers giving orders are the Marketing manager and the General Manager. In such a situation, they are not able to understand to whose orders they should give priority – one is their immediate boss and the other, a top officer of the company.
Several departments have been set up in this company; namely, Purchase, Sale, Advertisement, Production, Stock, Research, Correspondence, Accounts, Finance and Personnel. In this way, there are ten departments in all. In every department all the modern facilities are available. The company’s Finance Manager says that the Administrative Expenses of the company are rather too much. According to him, the main reason for this is the existence of so many departments in the company.

Identify the concepts of Management described in the paragraphs above.
Which principle of Management is being violated in the company? Explain.
How can the increasing administrative Expenses of the company be checked? Identify this concept.
The answer given in point ‘c’ is related to which function of Management?

‘Safe service limited’ is a well-known company for removing the routine problems of the
people. This company provides all types of big or small services; namely, Health services, Complaints regarding electricity faults, etc. This company has opened its offices at different places. The policy of the company is that women should be preferred to be appointed as the Heads of every office. Besides, under this policy, some positions shall be reserved for handicapped women also. The head of every office shall have the full authority to take decisions concerning the activities of her office.

Which concept of management has been mentioned in the paragraph given above?
Write about two of the advantages of the concept identified in point ‘a’.
Identify two of the values of the company.

In an organisation formal organisation is followed strictly where the employees have to work as per the directions only. The employees are performing under pressure. In your view, what changes are required in this company?

‘Decentralization is an important philosophy that implies selective dispersal of authority’. In the light of this statement, explain any four points of importance of ‘Decentralization.

Organizing

Explain the concept of ‘Functional Structure’. Also, explain three disadvantages of functional structure.