Which of the following is not a demerit of functional structure ........

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Which of the following is not a demerit of functional structure?

It places more emphasis on the objectives pursued by a functional head than on overall enterprise objectives.

It may lead to conflict of interests among departments due to varied interests.

It leads to occupational specialisation.

It may lead to difficulty in co-ordination among functionally differentiated departments.

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Explanation:

- Option 1: Placing more emphasis on the objectives of a functional head can lead to neglect of overall enterprise objectives, which is a demerit of functional structures.

- Option 2: Functional structures may create conflicts as various departments can have different goals and interests, making collaboration difficult.

- Option 3: It leads to occupational specialization. This is generally seen as a benefit since specialization increases efficiency and expertise within departments.

- Option 4: Coordination can be challenging among departments due to their functional differentiation, often a disadvantage in functional structures.

Your Answer: Option 3- It leads to occupational specialisation.