Functional structure: Functional structure refers to that organizational structure which is formed by grouping the objectives and people on the basis of function.
Advantages:-
i. Occupational specialization: A functional structure leads to occupational specialization since emphasis is placed on specific functions. This promotes efficiency is utilization of manpower as employees perform similar takes within a department and are able to improve performance.
ii. Promote control and coordination: It promotes control and coordination within a department because of similarity in the tasks being performed.
iii. Increase in efficiency: It helps in increasing managerial and operational efficiency and this result in increased profit.
iv. Minimize duplication: It leads to minimal duplication of effort which results in economics of scale and this lowers cost.
v. Ease in training: It makes training of employees easier as the focus is only on a limited range of skills.
vi. Ensures attention: It ensures that different function get due attention.
