One disadvantage of a functional structure is that it
Multiple Choice.
cannot be converted into an ambidextrous structure.
frequently lacks effective communication channels across departments.
does not facilitate rich and extensive communication between members of the same department.
does not allow the setting up of cross-functional teams.
The correct answer and explanation is :
Correct Answer:
frequently lacks effective communication channels across departments.
Explanation (300 words):
A functional structure is an organizational design where employees are grouped based on their specific functions or roles, such as marketing, finance, human resources, or production. This structure is one of the most traditional and widely used models, especially in companies that focus on operational efficiency and specialization. While the functional structure has several advantages—like clear lines of authority, deep specialization, and operational efficiency—it also comes with certain disadvantages.
One key disadvantage of a functional structure is that it frequently lacks effective communication channels across departments. Since departments operate largely independently and are focused on their specific tasks, there tends to be a silo mentality. This isolation can lead to poor coordination, misaligned goals, and slow response times when collaboration across departments is necessary. For example, if the marketing team launches a campaign without coordinating with the production team, it could lead to unmet customer expectations or resource mismanagement.
This communication gap can also hinder innovation and adaptability. When departments are not sharing information freely or working together closely, it becomes difficult to respond quickly to changes in the market or customer needs. Cross-functional initiatives—like product development or process improvements—may suffer due to misunderstandings, delays, or conflicting priorities between departments.
Contrary to the other options in the multiple choice:
- Functional structures can be adapted into ambidextrous structures with the right leadership and design.
- They do facilitate rich communication within the same department, enhancing specialization.
- While cross-functional teams are not inherent in a functional structure, they can be established, though doing so may require additional effort and coordination mechanisms.
In summary, while the functional structure supports specialization and efficiency, it often struggles with communication and collaboration across departmental boundaries, which can negatively impact organizational agility and performance.
