Podcast
Questions and Answers
What is one advantage of functional structure in terms of control and coordination?
What is one advantage of functional structure in terms of control and coordination?
It leads to better control and coordination within a department because similar tasks are performed.
How does functional structure increase efficiency?
How does functional structure increase efficiency?
It leads to managerial and operational efficiency and results in increased profit.
What effect does functional structure have on cost?
What effect does functional structure have on cost?
It leads to minimal duplication of efforts, which results in economies of scale and lower cost.
How does functional structure make training of employees easier?
How does functional structure make training of employees easier?
How does functional structure lead to occupational specialization?
How does functional structure lead to occupational specialization?
How does functional structure ensure that different functions get attention?
How does functional structure ensure that different functions get attention?
Flashcards
Control in functional structure
Control in functional structure
Functional structure promotes better control because similar tasks are grouped.
Efficiency in functional structure
Efficiency in functional structure
Grouping similar tasks increases efficiency.
Cost reduction in functional structure
Cost reduction in functional structure
Functional structure minimizes redundant efforts, leading to cost savings through economies of scale.
Training in functional structure
Training in functional structure
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Occupational Specialization
Occupational Specialization
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Attention to functions
Attention to functions
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Coordination in functional structure
Coordination in functional structure
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Operational efficiency
Operational efficiency
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Economies of scale
Economies of scale
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Emphasis on specific functions
Emphasis on specific functions
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Study Notes
Advantages of Functional Structure
- Promotes control and coordination within a department
- Achieved because similar tasks are performed
- Increases managerial and operational efficiency
- Results in increased profit
- Lowers cost through minimal duplication of efforts
- Results in economies of scale
- Makes training of employees easier, focusing on a limited range of skills
- Leads to occupational specialization, emphasizing specific functions
- Ensures different functions receive due attention
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Description
Functional structure promotes control and efficiency within departments by grouping similar tasks. This specialization increases managerial and operational effectiveness, leading to higher profits and economies of scale. Focused training and attention to different functions further enhance organizational performance.
