The can be insular with each component concerned about only its own performance, teamwork is not emphasized, and decision making slow with a lack of customer focus.

Functional Type Organizations

Explanation:

Under a functional type of organization, an organization is divided into departments based upon functional area of specialization.

For instance, a company may have different departments based upon functions performed therein such as accounting and finance, human resources, marketing and sales, etc.

The disadvantage of this form being an individual reports to multiple heads since purchase department for instance would manage the purchases of the entire organization.

Lack of coordination is one of the major disadvantages of this form of organization since departmental goals assume precedence over organizational goals and individuals get restricted to the operations of their own department rather than the organization as a whole.

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