Organisation Chart of ONGC

What are its disadvantages?

Explanation

Disadvantages of functional structure are:
(i) Work is assigned as per specialisation. Due to this, specialists working in different departments may not be able to see the perpective of the organisation as a whole.
(ii) It becomes difficult to hold a particular department responsible for any problem.
(iii) When organisation grows, structure of departments becomes complicated and creates problem in coordination.
(iv) Conflict often arises when the interests of two or more departments are not compatible.
(v) There is lack of flexibility as people may develop a narrow perspective and may not appreciate any other point of view.