12/2/2014

6 Important Advantages of Functional Organisation

6 Important Advantages of
Functional Organisation
by Saritha Pujari Organization

The following are the advantages of functional organisation

structure:
(1) Benefits of Specialisation:
The whole company is divided into many departments on the basis
of major activities to be performed. Each department is headed by
an expert manager. This results in more and better work being
accomplished in much lesser time. Hence, the benefits of
specialisation become available.

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6 Important Advantages of Functional Organisation

(2) Coordination is established:

All the persons working within a department are specialists of their
respective jobs. It makes coordination easier at the departmental
level.
(3) Managerial Efficiency is increased:
It helps in increasing managerial efficiency because of performing
the same work again and again. Further, this results in increased
profit.
(4) Minimal Duplication of Efforts:
In this type of organisation unnecessary duplication of efforts is
eliminated. For example, the function of finance is only carried out
by the finance department. There is no need to establish two or
more departments. It makes it possible to utilise the human and
other resources effectively.
(5) Training is facilitated:
It facilitates the training of personnel as the focus is only on a
limited range of skills. For example, the employees of finance
department are given training of financial issues.
The organisational structure on the basis of functions is shown in
the following diagram:
(6) Equal Weight age to All Functions:
It ensures that all the functions/activities get equal weight age.

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6 Important Advantages of Functional Organisation

1. Functional Organisation is the Developed form of F.W.

Taylors Functional Foremanship
2. 4 Main Disadvantages of Functional Organisation
3. 5 Important Characteristics of Organisation
4. Functional Organisation: Useful notes on Functional
Organisation
5. 6 Important Characteristics of Coordination in an
Organisation
6. 5 Important Advantages of Formal Organisation in
Business
7. 4 Important Advantages of Divisional Organisation
8. 3 Important Advantages of Informal Organisation
9. Nature of Organisation: Organisation as Process &
Organisation as a Structure
10. 10 Advantages of a Sound Organization Explained!

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