Photo AI
Outline the benefits to a business of a functional organisational structure. - Leaving Cert Business - Question 4 B - 2015
Question 4 B
Outline the benefits to a business of a functional organisational structure.
Worked Solution & Example Answer:Outline the benefits to a business of a functional organisational structure. - Leaving Cert Business - Question 4 B - 2015
Step 1
Due to specialisation, where each department is concentrating exclusively on one function such as marketing, production, sales or finance, employees and management build up high levels of skill and expertise through repetition and practice.
Answer
This leads to efficiencies as tasks get done quickly and to a high standard, which ultimately enhances overall productivity.
Step 2
The chain of command and line of authority is clear.
Answer
Clear lines of authority exist and employees know who to report to. This hierarchy ensures there is someone in charge of each department, which improves co-ordination and motivation, as employees know what is expected of them and when. Accountability is established, as each person is responsible for their specific task.
Step 3
There are clear communication channels.
Answer
The structure helps create a clear communication line between the top and bottom of the business. Instructions flow downward from management along the chain of command, which can result in important information being communicated quickly, leading to quicker decision-making.
Step 4
Functional Organisational Structures allow for a wide span of control.
Answer
There are economies of scale as resources are shared within departments with no duplication of resources. The wide span of control releases managers from micromanaging operations, so they can focus on the overall strategy of the business.
Step 5