Question

In: Economics

As an organization grow and differentiate, what problems can arise with a functional structure?

As an organization grow and differentiate, what problems can arise with a functional structure?

Solutions

Expert Solution

Anwer

As an organization grow and differentiate , various worriments can fabricate with functional structure. These problems are-

  • It become arduous to major the contribution of employees . The reason is that there is decrease in the input level when organization grow and differentiate.
  • Communication is another problem which is concerned with the functional structure.
  • Due to increase in the activities , it becomes hard to have control over the entire activities and another problem arise related to maintaince of control.
  • In some cases problem arise with the success of company. For example skills and capabilities of workers are increased .

Therefore , with the expansion of organisation these kind of issues arise in functional structure.


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