Functional Strategy Advantages And Disadvantages
In a functional structure, all of the decision-making occurs at the top levels of management. It also provides a clear career trajectory for employees, from junior-level positions, up to the top decision-making positions. A functional structure provides stability and efficiency, especially in large and complex organizations, because everyone uses similar processes. This also allows large businesses to take advantage of economies of scale. However, this type of structure can also lead to poor communication between departments, situations where departments do not work together and inter-departmental conflict. Customers may also become frustrated by lack of cooperation if they have to work with more than one department.
Functional Strategy Advantages And DisadvantagesIn a functional structure, all of the decision-making occurs at the top levels of management. It also provides a clear career trajectory for employees, from junior-level positions, up to the top decision-making positions. A functional structure provides stability and efficiency, especially in large and complex organizations, because everyone uses similar processes. This also allows large businesses to take advantage of economies of scale. However, this type of structure can also lead to poor communication between departments, situations where departments do not work together and inter-departmental conflict. Customers may also become frustrated by lack of cooperation if they have to work with more than one department.
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