Which of the following are advantages of the functional project organizational structure
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All of the companies define its organizational structure to determine the reporting relationships that will exist in the company. It simply states who works for who. Organizations choose their organizational structure based on many factors like: size, its geographic location, the manner of delivering different products and services that they will offer. Show
A functional organization is the most common type of organizational structure. This is where the organization is divided into smaller groups based on its special functions such as IT, finance or marketing. This departmentalization allows greater operational efficiency because the employees have their skills and knowledge to be shared within the group. The basis of this functional organization structure is an arrangement where a worker has different managers for different areas of the organization operation. Since this type of structure has many departments, it could also have several reporting structures as well. In a functional organization structure, the reporting relationships are grouped based on the specialty or functional area. Separate areas are established to take care of different concerns. When staff Specialists are incorporated into the organization and are placed upon the same (line) Authoritative level as the line executives. This type of structure is called a functional organizational structure or line and functional organization.In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. For example, the total work activities of an enterprise may be divided into various functions like purchases, production, marketing, finance, quality control. One manager would be responsible for each of these functions separately, which means that the finance manager would be responsible for financial activities and would have direct command over all such activities carried out in the enterprise. He will have an official command or formal power finance function and perform it. Wherever The function of the person may be located in the enterprise. This is a functional organizational structure chart. Functional authority occupies a Midway position between ‘line authority’ and ‘stop advice’. It is a means of putting the specialists in top postings throughout the enterprise. It confers upon the holder an unlimited power of command over the people of other departments concerning their function. Function authority remains confined to functional guidance to different departments. It helps in maintaining ability and uniformity in the performance of functional areas throughout the Enterprise. Advantages of Functional Organizational StructureFollowing are the important advantages of functional organizational structure: 1. SpecializationThe functional organizational structure helps in achieving the benefits of specialization of work. Every functional in charge is an expert in his area and can help the subordinate to perform better in his area. Related: 13 Factors Affecting Structure of Sales Organization. 2. Production of WorkloadIt reduces the burden on the top executives. There is pointed supervision in the enterprise, and every function in charge looks after his functional area only. 3. Executive DevelopmentA functional manager is required to have expertise in one function only. This facilitates better executive development. (functional organizational structure) 4. Scope of ExpansionIt offers greater scope for expansion as compared to line Organisation. It does not face the problem of Limited capabilities of a few line managers. Related: Top 15 Characteristics of Creativity (Creativity as a skill). 5. More EfficiencyIt creates a high degree of efficiency as the groups of employees and the functional heads perform their Limited and specialized operations. Thus, Thereby bringing expertise in performance and reduction in costs. Related: 19 Factors Influencing Entrepreneurship Development. 6. Better ControlThe expert knowledge of the functional managers facilitates better control and supervision in the Enterprise. Disadvantages of Functional Organizational StructureFollowing are the disadvantages of functional organizational structure: 1. ComplexityThe operation of the functional organizational structure is, complicated and is not easily understood due to its various technicalities. Workers are surprised by a number of instructions from different functional Heads. Thus, The employees in purchase functions are restricted in several ways by the financial manager and quality control manager also. This creates confusion in the Enterprise. 2. Dual commandIt violates the principles of unity of command since a person is accountable for more than one bosses. Related: 12 Qualities of Effective Leadership in an Entrepreneur. 3. Limited PerspectiveA functional manager tends to create boundaries around himself and thinks only in terms of his own department rather than the whole enterprise. This results in a loss of overall perspective in dealing with business problems. 4. Delay in Decision MakingThere is a general lack of coordination among the functional executives which causes the delay in decision making. When a decision problem requires the involvement of more than one specialist. Related: 11 Nature and Scope of Marketing (With Examples). 5. Problem of SuccessionThe functional organizational structure develops specialists rather than generalists. This may create the problem of succession in top executives. On the whole, This type of organization has been quite successfully followed in an enterprise like banks, insurance companies. For the division of work into various departments. But for the division of work within the departments themselves, The structure has not been found to be very successful mainly because there is no clear line of authority. Thus, Now you understood the concept of advantages and disadvantages of functional organizational structure. Which of the following is an advantage of a functional project structure?Advantage: Specialization
The most obvious advantage of a functional organization is that grouping employees by specialization ensures a dependable level of departmental competence.
What are the advantages of a functional organizational structure?Advantages of a functional structure
specialisation - departments focus on one area of work. productivity - specialism means that staff are skilled in the tasks they do. accountability - there are clear lines of management. clarity - employees understand their own and others' roles.
Which of the following is an advantage of a functional project management Organisation?Shorter project durationD. Strong motivation of project team membersE. All of these are advantagesThere is maximum flexibility in the use of staff. Appropriate specialists in different functionalunits can temporarily be assigned to work on the project and then return to their normal work.
Which of the following is the advantage of project based organizational structure?This structure is usually used in organizations with a flat hierarchy, where the project team is formed of different units or departments. The benefit of this (PMO) project organizational structure is that it allows more specialized employees to contribute to a project without going through layers of management.
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