Functional Organisational Structure

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4 Terms

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Define a Functional Organisational Structure

when reporting relationships are grouped based on tasks or specialty areas

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Describe a Functional Organisational Structure

  • an organisation may have separate departments for marketing and accounting

  • in each department team members must report up the chain of command to department heads who reports to the top management

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Advantages of a Functional Organisational Structure

  • specialisation - increases efficiencies and productivity

  • employee growth - chance of promotion due to hierarchical nature of organisation

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Disadvantages of a Functional Organisational Structure

  • can be difficult for manager as business grows

  • lack of teamwork as different functional areas have the perception they’re competing with each other