Question

What is the disadvantage of a functional organizational structure?

A. Divisions may be competing for the same customers.
B. People are in specialized "silos" and often fail to coordinate or communicate with other departments.
C. Employees with similar technical career paths have less interaction.
D. It can result in a loss of efficiency and a duplication of effort because each division needs to acquire the same resources.

Answer 1

The disadvantage of a functional organizational structure is the lack of coordination and communication between departments, leading to inefficiency and duplication of effort.

Step-by-step explanation:

The disadvantage of a functional organizational structure is that people are in specialized 'silos' and often fail to coordinate or communicate with other departments.

This lack of coordination can result in a loss of efficiency and a duplication of effort because each division needs to acquire the same resources.

For example, in a functional organizational structure, the marketing department might create a new promotional campaign without consulting the production department, resulting in a mismatch between supply and demand.