12/2/2014

Functional Departmentalization: Advantages and Disadvantages

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Functional Departmentalization:
Advantages and Disadvantages
This

GO

14 management
principles of
Henri Fayol
of

departmentalization. Functional departmentalization groups

together jobs which are involving the same or similar

5 Stages of
Conflict Process

activities. Here; the word function is used to mean

organizational functions such as finance and production,
rather than the basic managerial functions, such as planning
or controlling. Noted economist Oliver E. Williamson termed it

Top 10 Qualities
of a Good
Speech

as the U- form (for unitary) design.

Functional departmentalization allows the organization to staff
all important positions with functional experts and facilitates
coordination and integration. However; it also promotes tends
to promote centralization. For the organization to operate
efficiently

in this design there must

be considerable

coordination across departments.

5 Steps of Negotiation
Process
Ledger:
Defination and
Classification
Accounting is an
art and science

Sender and
Receiver
Oriented
Barriers of
Communication
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12/2/2014

Functional Departmentalization: Advantages and Disadvantages

Contributions of
Henri Fayol in
Management
Planning and DecisionMaking: Definition,
Differences, Relationship
8 Steps of
Planning
Process

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As mentioned, this is perhaps the most common form of

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common functions in most organizations. Personnel is

another major function in any organizations and encompasses
recruitment, selection, training, compensation, health and
safety, and labor relations.

Advantages
of
functional
departmentalization
Provides logical reflection of functions maintains power
and prestige of major functions
Follows principle of occupational specialization
Simplifies training and supervisor of the subordinates
Furnishes means of tight control at top

http://edu-article.blogspot.com/2013/08/functional-departmentalization.html

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12/2/2014

Functional Departmentalization: Advantages and Disadvantages

Each department can be staffed by experts in that

functional area
Coordination of activates within the departments is
easy

Disadvantages of functional
departmentalization
Decision

making

becomes

slower

and

more

bureaucratic

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De-emphasis of overall company objectives

Accountability and performance become increasingly
difficult to monitor
Overspecializes and narrows viewpoints of key
personnel
Reduces

co-ordination

between

functions

or

departments
Responsibility for profits is at the top only
Slow adaptation to changes in environment
Limits development of general managers.

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12/2/2014

Functional Departmentalization: Advantages and Disadvantages

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