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Vethier 2016 Vethier 2016
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How can firms counter the weaknesses of the functional structure?

▸ By eliminating the number of functional boundaries

▸ By allowing employees to become focused only on departmental goals

▸ By using cross-functional teams to coordinate efforts across functional boundaries

▸ By limiting the coordination and control between geographically dispersed areas

▸ By decentralizing decision making by top management
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Business in Action


Edition: 9th
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sportzchik15sportzchik15
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By using cross-functional teams to coordinate efforts across functional boundaries

The primary disadvantage of a functional structure is the silo effect, whereby people become isolated within the vertical "towers" of their own functional areas, which can inhibit vital communication and collaboration across functions. Firms that use functional structures often try to counter these weaknesses by using cross-functional teams to coordinate efforts across functional boundaries.

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