Page 21 - F1 - AB Integrated Workbook STUDENT 2018-19

Business organisation and structure

1.3 Functional/ departmental structure

Functional organisations group together employees that undertake similar tasks into
departments.

This type of structure is often found in organisations that have outgrown the
entrepreneurial structure.

Board of
directors

Marketing Production Finance Personnel

department department department department

 Advantages Disadvantages

 Economies of scale  Empire building

 Standardisation  Slow

 Specialists more comfortable  Conflicts between functions

 Career opportunities  Cannot cope with diversification

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