Communication is excellent within the department.Two parties, the Organization & the Employee, have direct benefits from this type of organization structure. Advantage of a Functional type of Organizational Structure This “exclusive or Silos” is not the case when we go for a matrix organization, matrix organizational structure, or any covered in PMI’s PMBOK. Each employee is working exclusively for his/her functional manager. These are also called silos structures, as every department works independently. Four different department staff are being controlled by only one respective head called the functional manager, and then these managers are reported to the Executive.Įach functional manager is exclusively dealing with his own product or service within the organization like in below: In the below infographic, a functional organizational structure is explained. In a Functional organization, members are organized by function, ability, relevant expertise for a direct single manager. Under this structure, coordination is left to top management, with functional heads pursuing their responsibilities with tunnel vision orientation, unless otherwise advised by top management.What Is a Functional Organizational Structure?įunctional Organization Structure is a hierarchical organizational structure in which areas of specialization group people.įor example, a hierarchical structure is created based on ranking, a group of specialization must have the same set of skills, and they are reported to one single manager. Oil and mineral extraction companies, such as Exxon use this structure, which is ideal when products and production methods are basically undifferentiated among countries. Westinghouse which produces more than 8,000 different products in such diverse areas as real estate, finance, nuclear fuel, television production, electronics systems, and soft drink bottling, it is difficult to imagine that the production head knows intricacies of production of all the products. Horizontally integrated multinational enterprises like McDonalds and Pepsico, which produce the same or similar products follow this structure and their establishments located in different countries report on functional structural lines.įor diversified entities offering different products/services this structure becomes cumbersome or less suited. Global Functional structures are suitable when product/service range offered by both the parent and the subsidiaries are few resulting in undifferentiated production and marketing methods among them. Suitability of Global Functional Structure Provides scope for different functional heads to disown (pass the buck) project failures.Little reward for cooperation with other groups, making coordination difficult to achieve.Coordination of functional tasks is difficult.Some disadvantages of the functional structure are as follows: This structure is suited for globalized firms, providing further synergies of specialization.ĭemerits of the Global Functional Structure.Employees work alongside colleagues who share similar interests.
Provides clearly marked career paths for hiring and promotion.The structure is simple and clear, making communication lines distinct and direct.
0 kommentar(er)
