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Strat Ba - Midterm Assignment Part 1 - Strategic Questions & Exercises - Vargas, Genevieve O. - Bsa21a1
Strat Ba - Midterm Assignment Part 1 - Strategic Questions & Exercises - Vargas, Genevieve O. - Bsa21a1
The functional organization may have unhealthy competition working with the other areas. There
may be a lack of understanding as to how significant that specific are to the company. In one
example, there may be a request from the marketing department which may not be prioritized in
order to attend to the concerns of the sales department by adding more people. Ideally, the
companies decide based on what is urgently needed. Because the people in the functional
organization are grouped according to their special set of skills, roles or task, the entire team will
operate well. However, the business strategies and the level of bureaucracy make it difficult to
respond to changes immediately.
Another disadvantage of functional organization structure is that these functional groups may not
be able to communicate more often which decreases flexibility and innovation.
When a company uses this type of structure, it groups its people according to their knowledge and
skills which help them become specialists on that field. It also requires a management system
which allows promotion, development and visibility of skills of people in each functional area. It
helps to bring in-depth knowledge and skill development among the employees to achieve the
goals of the company.
Management issues may arise because it is more bureaucratic, and the functional organization are
not accountable to each other and the poor horizontal coordination within the department may
occur. Employees’ motivation is greatly affected by lack of innovation and restricted views of
organizational goals. This structure can be rigid, and the standardized ways and high
formalization can hamper or impede faster decision making.
Lastly, another weakness of functional organizational structure is there could be lack of unit
coordination. This means that though the functional units can perform with higher level of
efficiency however, there could be difficulty working well with each other thus, cooperation is
compromised. Some people may be territorial or there may be some who are unwilling to
cooperate. These unhealthy coordination’s may lead to delays, reduced commitments, competing
interests, waste of time, and getting late in finishing the project.
4. Looking at the setup of a multi-business enterprise, how is the head office supported? Who pays
for the salaries of its employees?
The setup a multi business enterprise the head officers can either take a direct hand at formulating
strategies for their different functional organizations, or they can have a more relaxed approach where
they delegate strategic formulation to the respective organizations but demand a certain level of a
performance for each of them.
Payroll clerks are the workers most directly responsible for doing payroll. They collect employee work
times, verify records and attendance, and calculate wages, taxes, and adjustments. They typically perform
their jobs with the help of computers. Salary is a fixed amount of money or compensation paid to an
employee by an employer in return for work performed.