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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.

Vince Lombardi

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