The highly-efficient linear structure helps to give clear instructions to every employee within the department. Importance of Organizing Function Specialization - Organizational structure is a network of relationships in which the work is divided into units and departments. 5 ways to define and implement Marketing goals for your company, The ideal structure of the functional organization, What is Service Strategy? In a functional organization structure, the reporting relationships are grouped based on the specialty or functional area. All of the companies define its organizational structure to determine the reporting relationships that will exist in the company. Good communication within a team also tends to boost employee morale. There may be a lack of understanding as to how significant that specific are to the company. Each department is headed by an expert manager. • You may need to download version 2.0 now from the Chrome Web Store. Co-ordination of work is impossible and the organisation will collapse for lack of communication. It is vital that responsive, informed employees identify and meet their customers' requirements as quickly as possible. The image shows that marketing, production, engineering, and finance are the four most common functions in most organizations. Management must communicate with its customers, owners, the community as well as its prospective and present employees. Coordination of activates within the departments is easy. The team members work with other people in the field and it allows sharing of thoughts and knowledge to make the people learn new skills. De-emphasis of overall company objectives. In one example, there may be a request from the marketing department which may not be prioritized in order to attend to the concerns of the sales department by adding more people. When regularly communicating both internally and externally, organisations remain more transparent. It assigns task after evaluating their capabilities and makes sure that every task utilizes their skill to maximum capability. Functional structure arguably achieves greater operational efficiencies, as employees with shared skills and knowledge work together and perform similar functions. Follows principle of occupational specialization. For example, the advertising department puts its onus solely on brand awareness and product visibility whereas sales department on garnering maximum sales for the company. This type of structure is called a functional organizational structure or line and functional organization. There is a sense of security in the functional organization structure that results in loyal employees who can work without the fear of termination from the employment. It has adopted a functional organizational structure and has created departments for finance, marketing, sales, research, production, administration, and human resources. The communication flows not through the lower levels or employees but through department heads to top management brass. Slow adaptation to changes in the environment. All the individuals or workers are grouped on the basis of their similar know-how and, The responsibility of every worker and all the departments are fixed those results in exact accountability of their work. Communication can also lead to productivity and helps to avoid unnecessary delays in the implementation of policies.Communication is not confined solely to employees. It has to be in pursuance of th… Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, Functional Organization: Definition, Examples, Features, and Advantages, Value For Money Products And Their Advantages, Indirect Tax Definition - Meaning and Examples, Interview Clothes: Tips on Wearing the Right Interview Clothes, Functional Expert Definition - Importance and Advantages, Functional level Strategy: Definition, Examples And Variables, Cross-Functional Team: Meaning, Limitations, Factors, and Advantages, What is a Mechanistic Organization? Communication skills whether written or oral form the basis of any business activity. Human resource management performs different functions which start with the primary and basic processes of planning. 10 Basic Skills Every Employee Should Learn, What is Job Orientation?
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