[PDF] functional structure

What is the functional structure of an organization?

• 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 the president to finance and sales departments, to customer service, to employees assigned to one product or service.

What are the disadvantages of a functional structure?

• The following are some disadvantages of the functional organization structure: Employees may get bored because they have the same daily works. Since the employees are grouped according to their knowledge and skills, competition may arise between them. Cooperation and communication between departments and units may be poor.

Is functional structure the same thing as divisional structure?

• Functional structure is organizational structure in which the organization is divided into smaller groups based on specialized functional areas such as production, marketing, and sales. Divisional structure is a type of organizational structure where operations are grouped based on divisions or separate product categories.

What is an example of a functional organizational structure?

• The functional organizational structure organizes the activities of a business around areas of specialization. For example, there may be a marketing department that focuses solely on marketing activities, a sales department that only engages in sales activities, and an engineering department that only designs products and manufacturing facilities.