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Outline the benefits to a business of a functional organisational structure. - Leaving Cert Business - Question B - 2015
Question B
Outline the benefits to a business of a functional organisational structure.
Worked Solution & Example Answer:Outline the benefits to a business of a functional organisational structure. - Leaving Cert Business - Question B - 2015
Step 1
Benefits of Specialisation
Answer
One of the primary benefits of a functional organisational structure is specialisation. Each department can focus on its specific functions such as marketing, production, sales, or finance. This concentration allows employees to build high levels of skill and expertise through repetition and practice, ultimately leading to increased productivity and efficiency.
Step 2
Clear Chain of Command
Answer
The functional organisational structure establishes a clear chain of command. Employees know who to report to, which helps streamline communication and reporting processes. This clarity fosters accountability as employees understand their roles and expectations, promoting effective management.
Step 3
Improved Communication Channels
Answer
Such a structure enhances communication channels within the organisation. It creates a clear line for information flow between management and employees, facilitating quicker decision-making. Instructions can rapidly flow from top management down the hierarchy, making it easier to implement strategies efficiently.
Step 4
Economies of Scale
Answer
Functional organisational structures can also result in economies of scale. Resources are allocated effectively, reducing duplication and enhancing operational efficiency. This allows the organisation to maximize its resources and focus on its overall strategic objectives.
Step 5