Which of the following are the disadvantages of Functional Structure?

(A) A functional structure leads to occupational specialisation, since emphasis is placed on specific functions

(B) It may lead to problems in coordination as information has to be exchanged across functionally differentiated departments

(C) It may lead to inflexibility as people with the same skills and knowledge base may develop a narrow perspective

(D) Functional heads do not get training for top management positions because they are unable to gather experience in diverse areas

Choose the correct answer from the options given below:

Option 1 -> (A), (B) and (D) only - This incorrectly includes statement (A), which describes occupational specialization - actually an advantage of functional structure, not a disadvantage.

Option 2 -> (A), (B), (C) and (D) - This incorrectly includes statement (A). While it correctly identifies the disadvantages (B, C, D), occupational specialization is a strength of functional structures, not a weakness.

Option 3 -> (A), (B) and (C) only - This incorrectly includes statement (A) and excludes statement (D). It misses the valid disadvantage about functional heads lacking diverse experience for top management roles.

Option 4 -> (B), (C) and (D) only - This correctly excludes statement (A) since specialization is an advantage. It properly identifies the three key disadvantages: coordination problems across departments, inflexibility from narrow perspectives, and lack of cross-functional training for leadership development.

Hence, Option 4: (B), (C) and (D) only -> Statement (A) describes occupational specialization which is actually a benefit of functional structure, not a disadvantage. The real disadvantages are coordination difficulties between departments (B), inflexibility from narrow perspectives (C), and inadequate preparation of functional heads for top management due to lack of diverse experience (D) -> correct