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Which of the following is an advantage of Functional Organisation?
Question

Which of the following is an advantage of Functional Organisation?

A.

Increases coordination

B.

Promotes flexibility

C.

Encourages specialisation

D.

Reduces conflicts

Correct option is C

In a Functional Organisation, employees are grouped by their specialization (e.g., finance, HR, marketing), allowing each unit to develop deep expertise. This structure promotes specialisation, leading to increased efficiency and performance within functional areas.
Explanation of options: (a) ✘ Functional structure can sometimes reduce coordination between departments due to isolation. (b) ✘ It tends to be rigid and less flexible due to fixed functional boundaries. (c) ✔ The primary strength of a functional structure is its ability to build deep specialisation. (d) ✘ It can actually lead to more conflicts between departments over responsibilities and priorities.

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