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Organising — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesOrganising3 Marks
Question
In functional structure, all functions are separated, resulting employees have little understanding or concern outside their functional area. In the light of above statement, state the disadvantages of functional structure.
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Answer

The functional structure suffers from the following disadvantages:
  1. It is difficult to hold a single department responsible for any problem.
  2. As departments grow in number, coordination become difficult.
  3. Conflicts may arise between departments.

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