Functional organization types and their pros and cons

Functional organization types and their pros and cons
Functional organization types and their pros and cons

Functional organization types and their pros and cons

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Watch the “Structuring Your Organization” video.

Write a 350 to 700-word summary of your team’s discussion of each functional organizational types and their pros and cons


Functional organization types and their pros and cons


Different organizations adopt different structures that they deem essential to facilitate their operations.  These structures provide guidelines on how employees communicate sets and regulate policies, as well as source of authority and responsibilities of the staffs. The author deliberate on the various pros and cons of different organizational structures as discussed in the movie.


One of the types of organizational structure is functional. In such structures, various people hold similar positions hence perform related tasks and are expected to use same level of skills. Such structures are normally used in large entities to ensure division of labor (Digital films, 2014).  Advantages of this structure are classified under coordination and motivation. One of the benefits of this structure is that communication is easy because the people share various attributes such as skills and experience. It becomes very easy for people that share various aspects meet and communication on various issues (Digital films, 2014). The process and time of making decision is less.  Because of shared skills and knowledge, the people have same perspectives on certain aspects and therefore, it becomes easy and less cumbersome to reach a decisive conclusion/decision. Benefits related to motivation include enhancement of performance evaluations for supervisors. It is easier for the supervisors to monitor on progress of subordinates and when it comes to rewarding those that perform exemplary while discouraging lazy staffs. This structure gives peers an opportunity to evaluate and monitor colleagues hence a source of encouragement and inspiration. The structure as well creates an ambiance environment for development of teamwork that may culminate into the development of norms, values and cohesion among a group stimulating high performance (Montana & Charnor, 1993). This structure has as well a number of cons. One of them is that it is a bit cumbersome to render efficient services especially with increase in the products and services the company deals in.  It also becomes a challenge to meet the different needs of the continued increasing number of customers. The last con is that it is a challenge to meet all the needs of an entity especially if it expands in many regions.

Matrix is yet another popular structure that many entities adopt. This is more complex as it groups senior staffs according to the function and as product team members (Digital films, 2014). Subordinates in this structure have a product and a functional boss.

This structure has pros as well as cons.   One of the benefits of the structure is that it enhances the process of product development in an entity. There is cooperation and effective communication across the team members making the process to flow smooth. The structure encourages creativity and innovation as managers have different expertise. Decision-making is also improved through the teams (Aquinas, 2008).  Employees have freedom and autonomy when it comes to execution of their tasks improving their performance.  Some of the cons of these structures include increased cases of role ambiguity and conflict. Two bosses may cause a conflict when they address a solution.   Employees as well experience role ambiguity when it comes to whom to report and remains answerable.    The level of work stress is also high due to ambiguity and conflicts. Because of lateral movement, opportunities for promotion are minimal contributing to low morale among employees.

In conclusion, it is evident that all these structures have pros and cons. It is therefore important that managers adapt to a structure that best address their needs and helps in achievement of their goals and objectives.


Aquinas, P . (2008). Organization Structure and Design. Anurag Jain Publishers.

Digital films. (2014). Retrieved from:  

Montana, P., & Charnor, B. (1993). Management. A streamlined Course for students and Business People. Barrons Business Review series, 155-169. 

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