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Advantages
- It is the most logical and simple form of departmentation;
- It makes efficient use of specialized resources and skills;
- It makes supervision easier, since each manager has to be an expert in only his functional area of operation;
- It fosters development of expertise in specialized areas.
Disadvantages
- Functional departmentation is often found to be inadequate to meet the growing needs of the
business, particularly as the organization expands or diversifies its activities;
- Further, decision-making becomes slow as the functional manager have to get the approval
of the headquarters;
- It is also difficult to determine accountability in a functional structure. If a product fails, the question as to who is responsible cannot be easily answered; and
- Functional managers tend to develop narrow perspective and loose sight of the bigger picture. Members of each department feel isolated from those in other departments. For example, manufacturing department may be obsessed with cost reduction and meeting the delivery dates neglecting the quality control As a result, marketing department may be flooded with complaints.
Kavungya answered the question on March 26, 2019 at 12:16
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