Organisation Chart of ONGC

What are the advantages of such a structure?

Explanation

Advantages of functional structure are:
(i) It leads to occupational specialisation, since emphasis is placed on specific functions and repeated performance leading to efficient functioning.
(ii) It promotes control and coordination within a department because of similarity in the tasks performed.
(iii) It leads to increased efficiency and profits.
(iv) It leads to minimal duplication of efforts, which results in economies of scale, and lower costs.
(v) It makes training of employees easier as the focus is only on a limited range of skills.
(vi) It ensures that all functions get due attention.