Question

Which of the following are advantages of functional structure of an organisation?
(A) Leads to occupational specialisation.
(B) Places less emphasis on organisational objectives.
(C) Promotes coordination and control within a department.
(D) Increases operational efficiency.
Choose the correct answer from the options given below:

• A. (A), (B), and (C) only
• B. (A), (B) only
• C. (A), (C), and (D) only
• D. (C) and (D) only

Answer 1

The Correct Option is C

In a functional structure, an organization is divided into departments based on different functions such as marketing, finance, and production. Let's evaluate each statement to identify which are advantages of a functional structure: 

1. (A) Leads to occupational specialisation: In a functional structure, each department focuses on its specific area of expertise, which leads to a high degree of occupational specialization. This is an advantage as it allows employees to develop more in-depth skills and expertise.
2. (B) Places less emphasis on organisational objectives: This is not typically considered an advantage of a functional structure. Instead, it is usually seen as a potential drawback because departments might prioritize their goals over the organization's objectives.
3. (C) Promotes coordination and control within a department: Within a functional structure, since all employees within a department work towards similar objectives and use similar resources, coordination and control are generally enhanced, making this an advantage.
4. (D) Increases operational efficiency: By grouping employees based on function, a functional structure can lead to increased operational efficiency due to workflow specializing in tasks, improving productivity.

Based on the analysis, statements (A), (C), and (D) are advantages of a functional structure.

Thus, the correct answer is: (A), (C), and (D) only

Answer 2

To determine which options correctly describe the advantages of a functional structure in an organization, let's analyze each statement in detail:

Statements Analysis

(A) Leads to occupational specialization.

Correct: A functional structure groups employees by their specialized functions (e.g., marketing, finance, production). This leads to occupational specialization, as employees within each department develop deep expertise in their specific area.

(B) Places less emphasis on organizational objectives.

Incorrect: This is not an advantage of a functional structure. In fact, a functional structure can sometimes lead to a narrow focus on departmental goals at the expense of overall organizational objectives. However, this is a disadvantage rather than an advantage.

(C) Promotes coordination and control within a department.

Correct: A functional structure allows for clear lines of authority and responsibility within each department, which promotes coordination and control. Managers within each functional area can effectively manage and coordinate the activities of their teams.

(D) Increases operational efficiency.

Correct: By grouping similar functions together, a functional structure can lead to increased operational efficiency. Employees within each department can share resources, knowledge, and best practices, leading to more efficient operations.

Correct Options

Based on the analysis, the correct statements are:

(A) Leads to occupational specialization.

(C) Promotes coordination and control within a department.

(D) Increases operational efficiency.

Conclusion

The correct answer is: (3) (A), (C) and (D) only

These statements accurately describe the advantages of a functional structure in an organization.