Organizational structure is important part of any organization because it helps you to understand the communication and reporting flow (who reports to whom) of the people in the organization. Functional organizational structure is one of the traditional structures that based on the different common functions of the organization including manufacturing, engineering, marketing, human resources and secretarial. Functional organizational structure based on the units and departments of the organization that are controlled by the people of top management. Different divisional and product structures are distinguished in units according to the team leaders and geographical region. Functional organizational structure is based on the concept of high specialization and high control to increase the efficiency of your organization.
History of Functional Organization Structure
Functional organization structure has ancestry from early 20th century after the emergence of industrial age in order to increase the efficiency of management as efficiency is the main concern of each organization. At that time, organizations were designed with few managers at the top to lead several people in the bottom for the performance of tasks in organized way. Functional organization structure defined everything in details and feature top to down authority control. Control was maintained by establishing standard procedures.
Leadership Requirements under Functional Organization Structure
This structure based on the top to down authority control therefore leaders requires in-depth knowledge and experience in their area of specialization. This type of structure is used in those organizations where unit leaders have outstanding command on their given field. Leaders of each unit are required to be mentor of young staff members. Competency in their field and proper management skills are required for the success of functional organization structure.
Here is a preview of this free Organogram Template created using MS Word 2013,
Benefits of Functional Organizational Structure
Functional organization structure provides clear lines of command and specialized individuals in each department play important role in the growth and expansion of organization. This type of infrastructure promotes career advancements by clearly defining career paths, aptitude, talent and knowledge. It can make your work more enjoyable as you are working with a group of people with different knowledge level.
Weaknesses of Functional Organization Structure
Each unit of the organization focus on its own area of specialty therefore there can be lack of broad view of company. This structure features poor communication across different groups of people and slow response can put negative affects on the environment. Decision making authority of different units can be weaken as compare to the top level of management.
Effectiveness of Functional Organization Structure
Functional organization structure works best in the stable organization because in the presence of functional organization you cannot make rapid changes in the strategy. It is best for smaller or medium organizations that deal with few types of products and services.
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