Main Disadvantages of Functional Organization Structure
In the functional structure, functions are separated into different groups, resulting in some defects. Here are the major disadvantages you must consider:
- It will lead to poor communication and coordination across functional 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 the problem occurs or environment changes.
- The autonomy within units might increase when the company grows, which cause difficulties in management.
- The specialization will lead to a narrow viewpoint and lack of overall perspective.