20.

What is meant by 'Functional Structure' of an organisation? State any five advantages of this form of organizational structure. 

Functional structure comprises of grouping of jobs of similar nature under functional and organizing these major functions as separate. In this, the whole activities of the enterprise are divided into different functions like marketing, finance, personnel etc. Functional specialists are appointed at different functional levels. They can give orders and directions to all subordinates in connection with their function. All departments report to a coordinating head.

Advantages of a functional structure of organisation are:
1) Specialization: A functional structure leads to occupational specialisation since emphasis is placed on specific functions. This promotes efficiency in utilisation of manpower as employees perform similar tasks within a department and are able to improve performance.
2) Better control and coordination: It promotes control and coordination within a department because of similarity in the tasks being performed.
3) Maintenance of higher efficiency: It helps in increasing managerial and operational efficiency and this results in increased profit.
4) Economies of scale: It leads to minimal duplication of effort which results in economies of scale and this lowers cost.
5) No overload of work: The entire work is divided into various functions and is assigned to different functional experts. So managers are not overloaded with work.