Final answer:
The functional structure encourages communication across functions but lacks work specialization. It is efficient for organizations with a narrow focus and fewer product lines.
Step-by-step explanation:
One of the main advantages of the functional structure is that it encourages communication across functions. This is because in a functional organization structure, employees in the same department or function are grouped together, which promotes collaboration and sharing of information. For example, in a marketing department, all marketing specialists would be working closely together and exchanging ideas and insights.
On the other hand, one of the main disadvantages of the functional structure is the lack of work specialization. In this structure, employees are grouped based on their functions or areas of expertise, which can lead to a lack of specialized skills for certain tasks. For instance, if a company's finance department is responsible for both financial analysis and budgeting, employees may not have deep expertise in both areas.
Overall, the efficiency of a functional structure depends on the organization's focus and the number of product lines or services it has. Functional structures are more efficient when the organization has a relatively narrow focus, fewer product lines, or services. This allows the functional departments to specialize and become proficient in their respective areas.