It does not face the problem of Limited capabilities of a few line managers. It offers greater scope for expansion as compared to line Organisation. This facilitates better executive development. Executive DevelopmentĪ functional manager is required to have expertise in one function only. There is pointed supervision in the enterprise, and every function in charge looks after his functional area only. It reduces the burden on the top executives. Related: 13 Factors Affecting Structure of Sales Organization. The functional organizational structure helps in achieving the benefits of specialization of work.Įvery functional in charge is an expert in his area and can help the subordinate to perform better in his area. Advantages of Functional Organizational Structureįollowing are the important advantages of functional organizational structure: 1. It helps in maintaining ability and uniformity in the performance of functional areas throughout the Enterprise. It confers upon the holder an unlimited power of command over the people of other departments concerning their function.įunction authority remains confined to functional guidance to different departments. It is a means of putting the specialists in top postings throughout the enterprise. sample functional organizational structure chartįunctional authority occupies a Midway position between ‘line authority’ and ‘stop advice’. This is a functional organizational structure chart. Wherever The function of the person may be located in the enterprise. He will have an official command or formal power finance function and perform it. One manager would be responsible for each of these functions separately, which means that the finance manager would be responsible for financial activities and would have direct command over all such activities carried out in the enterprise. In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise.įor example, the total work activities of an enterprise may be divided into various functions like purchases, production, marketing, finance, quality control. Advantages and Disadvantages of Functional Organizational Structure When staff Specialists are incorporated into the organization and are placed upon the same (line) Authoritative level as the line executives. This type of structure is called a functional organizational structure or line and functional organization.
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