Are Organizations Grow And Differentiate, What Problems Can Arise With A Functional Structure?

1391 WordsJan 25, 20166 Pages
As organizations grow and differentiate, what problems can arise with a functional structure? Jones, Mills, Weatherbee, and Helms Mills (2006), wrote that as business entities expand varying issues may arise in a functional structure. In many cases, problems happen owing to the success of a company; that is, as the skill and abilities of workers heightened thereby allowing the company the opportunity to offer more in terms of products and services. The mechanisms of functional structures typically inhibit a company’s capabilities as it relates to servicing of the growing product line. Case in point, it becomes overwhelmingly hard for sales departments on the promotional team to provide the required time needed concerning introduction of a new product for it to be successful. The real issue is, the maintenance of control as activities becomes more complex. As a company outputs more goods and services, expand territorially our faces additional competition from rivals; the problems associated functional structure to become more evident. In connection with the above, the higher the chain of command gets - that is, more subunits are formed; communication may become an issue in a functional structure. Further, it becomes harder to measure the contribution of employees to the overall profitability is because the input level becomes less. Location also becomes a factor in a growing corporation as it relates to functional structure; this is because a centralized control will have

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