August 15, 2017

Disadvantages Of Functional Organization

Drawbacks or disadvantages of functional organizational structure are as follows:

1. Lack Of Unity Of Command

In functional organization, subordinates or lower level employees have to obey the instructions of number of bosses. So, there is no proper unity of command and conflict may be arise between workers and supervisors.

2. Lack Of Coordination

Due to poor unity of command, there exists lack of coordination in functional organizational structure. This may lead to poor organizational performance. 
disadvantages-functional-organization
3. Indiscipline

It is very difficult to maintain discipline in functional organization structure because confusion and conflict is created in the minds of employees due to multiple bosses. They cannot properly follow the instructions of many superiors.

4. Costly

High cost is another drawback of functional structure. The organization has to spend huge amount of money due to high remuneration of specialists and experts and high amount of clerical works.

   
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5. Difficulty In Fixing Responsibility

Because of lack of unity of command, poor coordination, lack of initiative and weak discipline, fixing of responsibility is very difficult in functional organizational structure.