Functional Organisational Structure The structure is designed on hierarchies such that positions as well as functions of each individual within the company are clearly stated. The organisation is segmented into key functional departments where each department encompasses all the activities related to it and all the departments within the organisation work towards achieving the common goal of the organisation. Organisations which mostly apply functional structure usually deal in one product or service just like Barclays Bank which offers financial services to customers. In Barclays Bank for example, there is the human resource, sales and marketing, accounts and finance, security, wealth management, mortgage, banking and insurance departments. Under these departments are other sub departments (Barclays 2011). Functional structure offers Barclays various advantages in its management and business processes. Since the structure ensures that Barclays has a well structured hierarchy as well as functions for each department and individuals, executing projects and providing instructions to employees in particular departments is easier (Miles & Snow 1992, 11). The linear structure in the organisation gives each employee an opportunity for pursuing a defined carrier path and as such employees are motivated to perform their best and commit themselves to the organisation as they are able to grow within their departments. Besides, departmentalisation groups employees with similar interests and skills together and this is likely to improve the performance of each department and the organisation as a whole (Miles & Snow 1992, 11). Functional structure ensures that Barclays elicit only the best for each department as each employee is taken his or her area of specialisation. Functional structure also enables Barclays Bank avoid duplication of roles and to also reduce management risks. Functional structure also has shortcomings which may limit Barclays’ business processes. The rigid hierarchy goes hand in hand with bureaucratic management which makes decisions to take long before they are made or before they materialize. Intra-departmental communication may take some time as each department is distinct. Besides, each department’s viewpoint is limited to its operations making it difficult to see the bigger picture of the organisation. Ability to see the bigger picture of the organisation motivates individuals in the organization to adopt more efficient measures in achieving the common goal of the organization (Miles & Snow 1992, 13). Management Theories Scientific Management Theory The theory was developed in 1880s and in the early 1890s by Fredrick Taylor to help improve economic efficiency and production in manufacturing industries. Taylor realized that the only way to improve productivity was to make the workers more efficient. It was very influential in management of companies in 1910s. However, it evolved in 1930s as most management theorists, workers and unions felt that it did not take into account human relations in management. His theory only focused on achieving economic efficiency and this placed undue pressure on workers to work harder and faster. The emphasis on achieving higher productivity made some managers to exploit customers as well as the workers and hence workers and unions o