What does functional structure mean?
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Correspondingly, what is a functional structure?
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 president to finance and sales departments, to customer service, to employees assigned to one product or service.
Likewise, when would you use a functional organizational structure? The functional organization structure is suitable for a business dealing with operations, like manufacturing industries. Most small industries with only a few products use this structure. The employees are highly skilled due to repetitive work which means high efficiency and the best performance.
Considering this, 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 are the advantages of functional structure?
Advantages of a functional structure The advantages of this type of structure are: 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.