What is a disadvantage of a functional structure?

A functional structure in an organization organizes employees based on their specific skills and functions, such as marketing, finance, or human resources. While this can enhance focus and efficiency within each function, a notable disadvantage is that it can create silos. This means that teams may become so specialized that they neglect to communicate or collaborate with other departments, leading to a lack of cross-team communication. This lack of interaction can result in fragmented efforts, misconceptions, and a slower response to changes or challenges that could benefit from a more integrated approach, ultimately affecting the organization's overall performance.

In contrast, high levels of employee morale, increased workflow efficiency, and minimized specialization are typically perceived as advantages of a functional structure.