![]() There is limited scope for cross-functional teamwork as managers often focus on their own departments it creates a self-centered mentality. Proper boundaries facilitate the smooth functioning of business operations, reducing any duplication of activities.Įmployees are likely to feel bored and unproductive because of the lack of variety of responsibilities it may lead to quicker burnout. The clear and well-established hierarchy reduces the need for additional communication channels.īy working in a particular department, every individual gets an opportunity to improve their depth of knowledge and skills this lays down a clear career path. Let’s explore the two sides of a functional organizational structure and assess the extent to which it can benefit a business.Īs everyone is grouped according to their knowledge and skills, every department is accountable for its responsibilities.Įverybody is well aware of their roles-minimizing confusion and allowing them to work efficiently, leading to increased productivity. A functional structure is ideal for an organization where the depth of knowledge is more crucial than the breadth of information (for example, large businesses). Now that you know how a functional organization looks like, you’re probably wondering if it is relevant in today’s fast-paced world. Is A Functional Organizational Structure Needed? Here’s how a basic functional organization chart looks like. The hierarchy is helpful in maintaining the quality and uniformity of performance across all levels of management, minimizing confusion and enhancing productivity. You’ll find this traditional business structure in the majority of organizations. It uses a top-down approach where executives and senior management personnel are placed on the top, followed by middle and junior management. How Does A Functional Organization Look Like?Ī functional organization chart is a visual representation that shows how various teams and their respective functions are divided. There is no unity of command, which means employees of all departments aren’t responsible to one person-in-charge Organizational activities are split up into various functions like finance, human resources and marketingĮach functional area is led by someone in authority (like a manager or a leader) who is the decision-maker Here are some of the features of a functional organizational structure: As every department focuses on a particular function, people often end up working in silos. It structures each department vertically, creating a hierarchical system. In other words, a functional organizational structure refers to a system of grouping employees by skill sets, related roles and expertise. ![]() There are five types of organizational structures and a functional management structure is one of the most popular ones.Īs the name suggests, a functional organization is one that divides an organization into different departments, based on their functions. Without a structure in place, there will be ambiguity and inefficiency. What Is A Functional Organizational Structure?ĭid you know that there is a strong correlation between your working style and the organizational structure? An effective organizational structure helps define your roles and responsibilities, providing you with a framework of activities and goals. ![]() Read on to see what it entails and how it impacts businesses. This kind of distribution of responsibilities is seen in a functional organization. Banks usually have several independent departments responsible for different functions. It’s not every day that we visit banks these days, which is why when we do, it becomes difficult to figure out which counter to go to. ![]()
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