Main Disadvantages of Functional Organization Structure
In the functional structure, such as shown in the following Facebook organizational chart, 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.