While it is true that you can find different organizational structures in companies, in this post, we are going to explain what a functional structure consist of as well as its advantages and disadvantages.
⇢ What is a functional structure in a company?
A functional structure stems from the need to have specialists in all the hierarchical levels. Thus, every employee has a supervisor and the teams are grouped according to their specialty, like for example: graphic design, marketing, web development, production, sales…
A company with a functional structure is more convenient for large production of standardized goods and services at low cost
This way, every area is much more specialized but it can also lead to a lack of communication among the functional groups in the company. Now, we will explain the advantages and disadvantages in a company following a functional structure model.
✔ Advantages of a functional structure in a company
Among the main advantages offered by a functional structure, we can find:
- As we previously said, we will reach a maximum specialization in all the organs, which lets every manager focus exclusively on his tasks. This way, the efficiency and productivity of every employee will be increased.
- The specialization of every level enables a better technical supervision.
- Eases direct, fluid and faster communication in every team, with no other intermediaries and so, with less interferences.
- Reduces the pressure to just one single person (who is usually the boss), as responsibilities are shared.
✘ Disadvantages of a functional structure in a company
Likewise, these are the most remarkable inconvenients we can find in a functional structure:
- As there are different specialists and supervisors, it cannot be clear who is in charge initially, which can lead to conflicts of authority.
- It can cause confusion and a vast array of objectives, as it requires multiple subordination and promotes unilateral decision making, generating conflicts in the main functions of the company.
- The specialization of groups inside a company could boost competition and rivalry, which could generate a possible division among the staff and tensions in the work area.
“The achievements of an organization are the results of the combined effort of each individual.”