Main Disadvantages of Functional Organization Structure
In the functional structure, functions are separated in different groups, resulting in some defects. Here are the major disadvantages you must consider:
- It will lead to poor communication and coordination across function units.
- There will be lack of understanding across departments.
- They focus more on their own goals and neglect the overall company objectives.
- Communication in organizations with functional organizational structures can be rigid.
- Slow to react in response to environmental changes.
- It stifles innovation when problem occurs or environment changes.
- The autonomy within units might increase when company grows, which cause difficulties in management.
- The specialization will lead to narrow viewpoint and lack of overall perspective.