5 main Disadvantages of Functional Organisation

5 main Disadvantages of Functional Organisation

1. The relationships are very complex. Too many cross-relationships between persons and departments make the situation very vague.

2. The definition of authority and responsibility is not very clear since the responsibility is not fixed. As such, it will be difficult to find out as to who is responsible if things go wrong.

3. Since there are a number of foremen, each being of equal rank, there are chances of clash and conflicts.

4. Decisions are likely to be delayed as several bosses have to be consulted on a single issue.

5. Difficulties are likely to arise in coordination.

Functional organisation can be adopted by big as well as small concerns. But it will be better to apply it to the higher levels.