Question

Why does the Sears use a functional structure? Provide a brief account of the advantages and disadvantages associated with this structure for your organization

Answer 1

Sears use a functional structure, due to below reasons:

1. The functional structure will have different division in the organization as where it will include human resource department, finance department, marketing department etc. Sears is a small size organization so it adapt towards the functional structure.
2. The company focused on dividing the responsibility among the department for their business operation to be more effective and efficient.
3. The executive and managers in these structures will provide direction to the business which impact towards the profit of the organization.

The following are the advantages and disadvantages of functional strategy:

Advantages	Disadvantages
The groups together will focus to increase the performance of the organization as the departments like finance; sales etc will involve high in improving the business activities.	There is less coordination, so that affect the business performance.
Limited resources are needed for this structure, so less cost company can invest.	Conflict arises as where there is no team bonding. The views and ideas of decision making are not accepted by all in the organization.
The business operation and its activities will involve with speed and clarity, so its avoid arising on any problem with the organization.	Different departments so they does not have common function which impact on territorial disputes.