Question

. In a substantive 75-150 word post to the discussion below, respond to the following:

Broadly, an organization's functions - in one form or another - encompass: Operations, Finance, Research and Development (R & D), Marketing/Sales, Human Resources, and Information Technology. Ideally, to the benefit of the organization as a whole, decision-making is integrative, interactive and systemic; that is, cross-functional. However, at the other end of the continuum are organizations whereby each organizational function operates as a functional silo; that is, independent of other organizational functions and each function aspires to achieve its goals and objectives. Comment on the advantages associated with cross-functional decision-making and the drawbacks of decision-making within functional silos. Offer a specific example to help make your point.

Answer 1

The advantages of cross-functional decision making are as below:-

It facilitates the creative and effective decision making

The concerns and opinions of different functional areas are included which makes the decision a more reliable

The diversity of experience, expertise and knowledge of different departments can be used in decision making which will help in creating synergy and increase the perspective of the process.

Disadvantages of functional silos:-

As different department function separately, it can create conflicts among them

The lack of coordination and proper communication can hamper effective decision making

The departmental objectives will be given higher priority over organizational priorities

Example:- Let us consider a case where the marketing department wants to launch an advertising campaign having the huge fund requirement in order to boost the sales. This decision is not supported by the finance department due to fund requirements. This will cause a conflict between the two departments as both are having different objectives. If they would have worked in coordination, they could find out the common way of doing things and thus benefit the organization.