Mod 1 Lesson 2
A
Leading
VI
TU
Organizations org
IS
hierarchy and
M
O
structure:
A
N
Solutions
JP
Provided
, functional structure strengths and weaknesses
Strength: Specialization
1. companies use a functional organizational structure, people with similar knowledge
and skills are grouped together. This makes it possible for employees to become
A
specialists in their field.
VI
Strength Productivity
1. Specialization leads to operational efficiencies and enhances productivity levels.
TU
2. Because of their expertise, workers with specialized skills can perform tasks quickly,
efficiently and with more confidence, thus reducing the occurrence of work-related
mistakes.
IS
3. The main goal of functional structures in organizations is to bring the entire human
and informational resources together to meet the organization’s goal.
M
Weakness: Management Issues
O
1. Communication in organizations with functional organizational structures can be rigid
because of the standardized ways of operation and the high degree of formalization.
A
2. decision-making process slow and inflexible.
N
3. Lack of innovation and restricted views of organizational goals, along with too much
focus
JP
Weakness: Unit Coordination
1. their level of cooperation with each other is sometimes compromised.
2. groups may have difficulty working well with each other as they may be territorial.
ultimately can bring down production levels overall, and the company-wide employee
commitment toward meeting organizational goals