What are the advantages and disadvantages of interrelationships between organizational functions and the impact that they can have upon organizational structures?

Subject: Business

Soln:
Some of the advantages of interrelationships between organizational functions are –

1. It helps in specialization by accomplishing more and better work in less time.

2. It helps to establish co-ordination as employees working within a department are well-qualified in their respective jobs, and they can co-ordinate with each other easily at the department level.

3. It helps in increasing managerial efficiency as employees perform the same work again and again until they work more efficiently, thus increasing profits.

4. It helps to facilitate training.

5. It helps the organization to perform work according to the function, thus avoiding any duplication of work.

Some of the disadvantages of interrelationships between organizational functions are –

1. As projects are managed by multiple functional managers, clients may not get the right status of the project.

2. It may create conflicts between functional managers which could affect the progress of projects.

3. It could create a lack of unity.

4. It may disrupt relationships among members of the organization.

The interrelationships between the organizational functions could have a negative impact upon the organizational structure because organizational functions divide the work into different departments that depend on each other. If any department does not accomplish its function, the entire business would suffer.

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