There are various advantages and disadvantages associated with grouping organizational structure according as functional structure. In a functional structure, people performing and allocated to the same kind of job are grouped together. The kind of work they do and the kind stipulated long run goals are more or less the same. In such circumstances it’s easier to learn from each other and specialize in their respective fields. At the same time, the tasks associated with one job in a lot of circumstances may often be linked to the tasks associated with another job. This cultivates co-operation and harmony amongst employees of the same organization. They work together and help each other more often that observed normally. A renewed sense of cooperation holds sway over the organization. In United Furniture for instance, the person responsible for photography and image department works closely with those associated with the visual and communications department. As a result United is able to develop a strong and focused marketing campaigning. (R.Duncan, 1979)
At the same time, functional structures, making it easier for managers to evaluate and appraise the performance of individual employees because those with similar jobs have been grouped together. They are less spread out and can be more critically looked after when working in groups compared to when working separately. Had marketing experts, logistics experts, real estate experts been grouped together in a function and supervised by managers from merchandising, he would not have had the expertise necessary to evaluate these people efficiently and smartly. However, the same can problem could be truncated through the functional approach. In the functional approach, the coworkers can evaluate the jobs of their respective co-workers by working closely with them. Not only is this form of performance and appraisal method efficient but it helps cultivate a common sense of understanding between various group members. Managers normally prefer functional structure because it gives them the liberty to create their own set of functions necessary to evaluate and help monitor the proceedings of the organizations and the tasks allocated to them.
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