In functional structure, the managers have the advantage of supervising similar tasks related to functions such as marketing, manufacturing, R&D etc. Overall supervision is high and coordination can be easily achieved. Since employees performing similar tasks are grouped together therefore overall learning from each other’s skills is high. However the disadvantage is the lesser interaction between the other departments and people belonging to other departments. It is difficult to motivate employees under functional structure because of similar nature of tasks. In matrix structure, an employee works as a team member and reports to two bosses. The advantage include flexibility of tasks, greater learning and disadvantage include chaotic situation when two bosses present opposing points of view.
In matrix structure, high coordination is required between the employee and employer. The advantages of divisional structure include flexibility in terms of usage of product structure, geographical structure and market structure depending upon the need of the organization. The disadvantage includes higher costs associated with maintenance of such structures.
