Issue of the functional structure

An issue of the functional structure is the lack of cross-function interaction. Teamwork is a very important part of the business. In a functional structure, resources and talents are allocated to specialized skills. Employees are not seen as people or talents, but they are seen as their function such as HR, Finance or Production. Therefore, there is a lack of a sense of employee morale; company’s culture and team work is difficult. Employees in functional structure would have to prioritize their department’s resources and problems. They would not be willing to work with other departments to solve a common company-wide issue. They would also not be willing to help other departments to solve problems not of their own.