Functional structure is an organisational structural formed by grouping of jobs of similar nature under functions and organising these major functions as separate departments vice production, finance etc.
Advantages of functional structure:
(i) Specialisation: It promotes specialisation since each department has to perform a specific function. Employees perform similar tasks within a department which improves their efficiency and they attain specialisation.
(ii) Avoids duplication: It helps in avoiding duplication of functions, efforts and resources, as one single functional department caters to the needs of entire oganisation.