Projects management in pure product organization The merits of functional organisation are as follows: (1) Specialisation—It ensures a greater division of labour and enables the concern to take advantage of specialisation of functions. Because the people in the functional organization are grouped according to their special set of … A Functional organizational structure has several advantages and disadvantages when it comes to managing projects: Advantages. These structures are reported to be good for a productive resource coordination. If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training . Lack of teamwork and reduced flexibility may cause conflicts between departments and units. Disadvantages of the Functional Organizational Structure. The organizational structure can be classified under following two types: ADVERTISEMENTS: 1. Hindered decision-making. The lack of new challenges can make them unenthusiastic for the job at hand. The key difference between matrix structure and functional structure is that matrix structure is a type of organizational structure where employees are grouped concurrently by two different operational dimensions whereas functional structure is a structure that divides the organization based on specialized functional areas such as production, marketing, and sales for the purpose of … It is an organizational structure formed by grouping together all activities into functional departments and putting each department under one coordinating head. Let's take a look at the advantages and disadvantages of each so you know what you're up against when you join a new structure. section 3, advantages of functional structure will be discussed, in section 4, challenges of functional structure and operational issues. This provides better communication and coordination while executing projects. 4. The operation of the functional organizational structure is, complicated … The departments have a self-centered mentality. Functional Organizational Structure In a functional organization structure, the project manager and all the resources work in the same company division, such as the sales and marketing department. Employees do not report to multiple managers. Disadvantages of a functional organizational structure Lack of attention. Communication across departments becomes difficult because all of them are so distinct from each other. Companies organized by function group employees according to their activities in the organization. An organization can be arranged according to a variety of structures, which enable the organization to operate and perform. A Functional organizational structure has several advantages and disadvantages when it comes to managing projects: Advantages. Cooperation and communication between departments and units may be poor. Disadvantages of the Functional Organizational Structure Employees may find it boring to repeat the same task over and over, and become less enthusiastic over time. Hence, overall organisational objectives suffer. The matrix organizational structure is a combination of two or more different kinds of organizational structures, such as project management or functional management. To engage customers, many companies approach towards multi-channel communication. Segregating the workforce according to function clarifies organizational responsibility and allocation of tasks. Here are some examples of the most typical fields where the functional structure is used: The most obvious advantage of a functional organization is that grouping employees by specialization ensures a dependable level of departmental competence. When each group of specialists in a functional organization is relatively isolated, the common bond that emphasizes a single overarching organizational purpose is almost inevitably weaker than in an organization where different kinds of employees regularly interact. As the organization grows bigger, functional areas become difficult to manage. These days, we have so many potentially labour saving technological devices, which we have deeply inculcated in our daily practices but with a logical question: to what extent do such advances increase rather than decrease workload and stress? There is a very low level of communication between the two departments, and it results in po… In this article, we are going to review the advantages and disadvantages of each organizational structure: Functional, Projectized, and Matrix. Each employee will report to his direct functional manager. To put it in simple words demands of a working individual’s career should not overwhelm his ability to enjoy a satisfying personal life beyond the business environment. In the decentralized model, the decisions making is faster and there is fairness to the employee. “Functional structures are the most common type of structural design and have evolved from the concept of high specialization, high control framework of manufacturing organization turned towards high efficient,” reports Practical Management website. 2. The omni-channel is nothing but an effortless, high quality and flawless customer experience between or within contact channels. Lack of teamwork and reduced flexibility may cause conflicts between departments and units. In this type of organizational structure individuals perform only tasks in which they are experts and it is easier to manage the work allocation upfront. Lack of teamwork and reduced flexibility may cause conflicts between departments and units. A functional structure c. A divisional structure d. A team-based structure e. A virtual network structure. Advantages of Functional Organization: Functional organization has the following advantages: 1. Disadvantages of the Functional Organizational Structure Since the employees are grouped by their knowledge and skills, competition may arise between them. ... functional organization has both advantages as well disadvantages and any company thinking of adopting this type of structure should carefully analyze both the aspects and then take the decision. Here are some examples of the most typical fields where the functional structure is used: Advantage – Clear Paths of Advancement. 3. This structure is centralized and hierarchical, so information and lines of responsibility flow from top management down through the heads of the various specialized departments and to the employees who carry out the work of each functional unit. Employees may feel bored because of repetitive work. If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training. They always give more importance to their departmental objectives. 3. Functional structure has some disadvantages as well, including:  People specialized in certain functions may find difficulties in understanding other functions and hence they are reluctant to change. This can cause poor communication and \"silos\" that are too independent from one another. It is task-oriented in scope. Also learn about its advantages and disadvantages! Having departments populated by employees specializing in specific work areas means that teams become siloed. Disadvantages of a Functional Organizational Structure In the long term, employees tend to feel bored and the monotony of the job can be off-putting. As a single division does not produce enough to take great benefits out of the economies of scale. Since the employees are grouped by their knowledge and skills, competition may arise between them. Employees do not report to multiple managers. Staff or Functional Authority Organizational Structure: Functional organizational structure is best for smaller companies or those that focus on a single product or service. Disadvantages. Disadvantages to a Vertical Organizational Structure. The functional structure focus on principles of specialization where people will be grouped in broad business activities such as marketing, production, human resources and finance. Advantages and Disadvantages of the Functional Organization Structure. 3. Disadvantages of the virtual network approach include: Some of the factors causing dissatisfactions are company policies, supervisions, work conditions and also relationship with the employer and other working colleagues. This monotony causes loss of enthusiasm. 1. 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