Accounting technicians scheme west africa
Advantages of Functional Structure
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- Disadvantages of Functional Structure
- Divisional Structure
- Product Division
| Advantages of Functional Structure • Promotes skill specialization and in-depth development of expertise. • Reduces duplication of resources and thereby enhancing efficient utilization of resources. • Enhances coordination within the functional areas. • Enhances career development and training within the department. Managing Director GM. Production GM. Finance GM. Marketing GM. Personnel 146 • It is logical and very easy to adopt. • It allows superiors and subordinated to share common expertise • Centralizes decision making. • It promotes high-quality technical problem solving • It enables the top management to exercise tight control on the workers. • It makes training and supervision easier. Disadvantages of Functional Structure • There is slow response on multifunctional problems. • Top management will have work overload, particularly on decision making. • Emphasizes routine tasks • Reduces communication between departments • Focuses on departmental issues rather than organisational issues thereby by restricting the view of employees • Delay indecision making, particularly, if the organisation has grown big. • Coordination is likely to be a problem for top management when the organisation grows. ii) Divisional Structure this is a type of departmentalization in which positions are grouped according to similarity of products, location or geography or place and customer. This type of structure occurs when a firm grows so large that functional departments become cumbersome. When the weaknesses of the functional structure exceed the benefits, growing firms tend to restructure into the divisionalized form. There are different divisional forms but the most common types area) Product Division these are divisions created to concentrate on a single product or service or at least a relatively homogeneous set of products or services. Ina product structure, each department is responsible fora product or a related family of products. Lawal (1993) reasoned than an organisation may structure itself in this manner because of variations in production and marketing activities of the different products manufacture. In short, this structure is useful when the firm’s goods or services are specialized and require specific expertise for their manufactured and sale. Figure 3.4 represents a diagrammatical illustration of product division |