Functional organizational structure
Functional organizational structure

An Organizations, needs a clear structural design, outline of it’s hierarchy and a roadmap of how it survive the vast global village. Functional organizational structure sets up a clear outline of it’s departments and they need to provide a well defined process on project success. In business there are different sizes and types of organizations.

These organization need a clear organizational structure in order the business to be successful. Organizations need transparent and effective policies and hierarchies in order to reach their goals.


Understanding the nature, pros and cons, and how organizational structures work and how they are implemented, how they support an organization attain the desired results and objectives so that you can decide which is right for your business strategy and begin working toward meeting your goals for greater efficiency, competitive strength, profitability, and more must be the soul purpose of any organization.


From the smallest organization or business to multinational corporation across the global village all depend on any of the following types of organizational structures. They are discussed in this article, we outlined different types of organizational charts in their mechanistic model: Functional, Divisional, Matrix, and Hybrid

  1. Functional organization structure
    Functional organization structure are structures in which team members are grouped into departments based on their shared skill sets, specializations, accountabilities, and goals.
  2. Matrix organizational structure
    A matrix organization decentralizes decision-making and provides teams with increased autonomy while simultaneously improving cross-functional collaboration to boost overall productivity and encourage innovative approaches to problem solving.3. Divisional organizational structure
    Divisional organizational structure are type of organizational chart that allows teams to collaborate on broad, shared organizational goals while maintaining a primary focus on their respective, specific goals.


Functional organizational structure example


A functional organization structure is a type of organizational structure that is used to organize workers. Functional organization structure operates on grouping team members based on their specific skills and knowledge. It structures each department vertically and gives roles which flow from the head of an organization to lowest member on the hierarchy. The main features of Functional organizations is that they contain specialized units that report to a single authority, usually called top management.


Though this organizational structure is Similar to a hierarchical organizational structure, a functional Organization structure starts with positions with the highest levels of responsibility at the top of the charts and goes down from there. Even though workers are grouped according to the skills, specialization and their corresponding function in the company each separate department is managed independently.


For this reason functional organization’s structures is sometimes referred to as “silos” , this is because each department operates independently and have their own vertical management structure. Under the function organizational structure workers from each department communicate with each other without reservation and department heads communicate with each other.

Read: Functions of Public Administration

In order for this structure to work well there must be a stable environment with continuous projects. The major goal of a functional structure is to put together every member of the team working on each activity necessary for one activity in a single place. The following are some of the pros and cons of functional organization structure;

Functional organizational structure advantages and disadvantages


Advantages of functional organizational structure

  • Functional organizations allows employees to focus on their role.
  • They encourage specialization in a certain skill set.
  • Functional organizations help teams and departments feel self-determined.
  • Functional organizations are easily scalable in any sized company or corporation.


Disadvantages of functional organizational structure

  • They have a possibility of creating silos within an organization.
  • They hamper inter departmental communication
  • Functional organizations obscures processes and strategies for different markets or products in a company

Who Is Best Suited for a Functional Organizational Structure?


Functional organizational structure is best suited for large organizations and Larger companies. These must be organizations that offer or produce just a few types of goods or services. Functional organization structure is not advised for because they might find it too constraining.

For projects in which the depth of knowledge is more important than the breadth of information, a functional organization structure is appropriate. For instance, a fundamental research and development program is well-suited to a functional organization structure since the project can capitalize on the expertise of the department.


Finally, functioning organizational structures helps organizations run their business and earn a profit by assigning their employees responsibilities according to their skills and expertise.

It gives a clear hierarchy and avoids confusion among employees who may be unsure who they are to report to. It is an efficient way to run a business but can have drawbacks as it can lead to a lack of communication between departments and unenthusiastic employees.

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