What Is Meant By Functional Structure Of An Organization?

by | Last updated on January 24, 2024

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A functional organizational structure is a

structure used to organize workers

. They are grouped based on their specific skills and knowledge. It vertically structures each department with roles from the president to finance and sales departments, to customer service, to employees assigned to one product or service.

What is an example of a functional organizational structure?

In a functional organizational structure , an organization’s reporting relationships are grouped based on specialty, or functional area. For example, there

might be separate departments for marketing, accounting, and engineering

. Generally, all the functional heads will report directly to the company president or CEO.

What is functional structure and example?

A functional structure is

the one that divides the major functions of a firm into different groups

, for example, information technology (IT) department, finance department, marketing department and production department. … Airtel has a functional structure which is one of the best organizational structure examples.

What is meant by functional structure of an organisation explain its advantages?

Advantages of functional structure are as follows: 1. Specialization: Under functional organisation,

an employee is required to perform the same job within a department regularly

. Thus, this improves the performance of the employees and leads to specialization in the organisation. 2.

What is functional structure of organisation Class 12?

According to the chapter of Organising class 12 notes, there are 2 types of organisational structure namely: Functional Structure: in this structure,

the activities or jobs or tasks are grouped keeping in mind the functions of that particular task or job

.

What are the advantages of functional structure?

  • specialisation – departments focus on one area of work.
  • productivity – specialism means that staff are skilled in the tasks they do.
  • accountability – there are clear lines of management.
  • clarity – employees understand their own and others’ roles.

What are the main features of functional structure?

  • Following are the features of functional organisation:
  • Functional organisation has the following advantages:
  • Specialisation:
  • Increase in Efficiency:
  • Scope for Growth:
  • Flexibility:
  • Relief to Top Executives:
  • Economy of Operations:

What are the 7 key elements of organizational structure?

These elements are:

departmentalization, chain of command, span of control, centralization or decentralization, work specialization and the degree of formalization

. Each of these elements affects how workers engage with each other, management and their jobs in order to achieve the employer’s goals.

Is Apple a functional structure?

Apple employs what is known as a “unitary organizational form” — U-form for short — which is also known as

a “functional organization

.” In broad strokes, a U-form organization is organized around expertise, not products: in the case of Apple, that means design is one group (under Ive), product marketing is another ( …

When would you use a functional structure?

People in a functional structure setting have specialized skills that

allow them to work more quickly and efficiently

than those who may be unfamiliar with specific subjects, which leads to greater productivity. Also, their confidence level enables them to complete tasks with minimal supervision.

What are the advantages and disadvantages of functional structure?

  • Advantage: Specialization. …
  • Advantage: Operational Speed. …
  • Advantage: Operational Clarity. …
  • Disadvantage: Segregation. …
  • Disadvantage: Weakening of Common Bonds. …
  • Disadvantage: Lack of Coordination. …
  • Disadvantage: Territorial Disputes.

What are the advantages of divisional structure?

  • (1) Development of Divisional Heads: …
  • (2) Divisional Results can be assessed: …
  • (3) Quick Decision Making: …
  • (4) Easy Expansion:

What is the structure of an organization?

An organizational structure is

a system that outlines how certain activities are directed in order to achieve the goals of an organization

. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company.

What is the difference between functional structure and divisional structure?

Functional Structure is one in which the

reporting relationships of the organization are bifurcated according to their functional area

. An organizational structure wherein the organizational functions are classified into divisions as per product or service lines , market, is called Divisional Structure.

What is importance of Organisation?

Organisation

helps in optimum utilisation of financial and human resources

. It not only aids in the proper assignment of jobs to suitable employees but also keeps track that there is no waste of resources and efforts due to duplication of work.

What are the disadvantages of functional structure?

  • It will lead to poor communication and coordination across functional units.
  • There will be lack of understanding across departments.
  • They focus more on their own goals and neglect the overall company objectives.
Emily Lee
Author
Emily Lee
Emily Lee is a freelance writer and artist based in New York City. She’s an accomplished writer with a deep passion for the arts, and brings a unique perspective to the world of entertainment. Emily has written about art, entertainment, and pop culture.