What is meant by functional structure of an organisation ? Explain any three of its advantages.

Answer -A functional structure groups similar activities into departments such as production, marketing, finance and personnel.

Advantages

• Functional specialisation improves expertise and quality.
• Coordination and control within each department become easier.
• Reduced duplication creates operational economies and lower costs.
• Focused attention improves managerial and operating efficiency.
• Training is easier because the range of skills within a department is defined.