Which of the following is a disadvantage of functional grouping?

The selection identifying that management can become too large and inefficient as a disadvantage of functional grouping is insightful. Functional grouping organizes employees based on their specific roles or functions within the organization, like marketing, finance, and production. While this structure can lead to specialization and expertise, it often results in a hierarchy that can grow extensively.

As the organization expands, the layers of management may increase, which can create communication barriers and slow decision-making processes. Inefficiencies can arise because too many levels of hierarchy could delay responses to market changes or internal challenges, making it harder for the organization to adapt and innovate promptly.

In this structure, the emphasis on departmental functions can cause departments to operate in silos, limiting collaboration. As a result, the overall responsiveness and agility of the organization may suffer, and the effective management of resources and personnel may become cumbersome.

Understanding this dynamic helps highlight the potential drawbacks of functional grouping.