Which of the following are advantages of functional structure of an organisation?

(A) Leads to occupational specialisation.
(B) Places less emphasis on organisational objectives.
(C) Promotes coordination and control within a department.
(D) Increases operational efficiency.

Choose the correct answer from the options given below:

The correct answer is (A), (C) and (D) only.

A functional structure is an organizational design that groups employees based on their specific skills, functions, or areas of expertise (such as marketing, finance, human resources, or production). Let us analyze each of the given statements step-by-step to understand why they are advantages of this structure:

(A) Leads to occupational specialisation:
In a functional structure, employees performing similar tasks and using similar skills are grouped together in one department. Working continuously on specialized tasks allows employees to gain in-depth knowledge and experience, which leads to occupational specialization and high efficiency.

(C) Promotes coordination and control within a department:
Since members of a functional department share similar backgrounds, languages, and skills, communication is easier and more direct. This similarity promotes better coordination, supervision, and control over activities within that specific department.

(D) Increases operational efficiency:
Specialization and focused coordination lead to minimized duplication of effort, streamlined operations, and better utilization of manpower. This directly translates to increased operational efficiency and higher productivity across functions.

Why (B) is not an advantage:
Statement (B) says it "places less emphasis on organizational objectives." This is actually a major disadvantage (or limitation) of the functional structure. Because departments become highly focused on their own goals (departmental empires), they often lose sight of the overall organizational objectives, leading to functional conflicts and coordination issues between departments.

Therefore, statements (A), (C), and (D) represent the true advantages of a functional structure, making (A), (C) and (D) only the correct choice.