![]() ![]() Specialization is an advantage of functional structure. ![]() What are the advantages of an organizational structure by function? It enables them to adapt to changes quickly and easily. Thus, they generally adopt a flat structure rather than a functional one. Meanwhile, small companies may view this structure as too rigid. People specialize in their fields, and top executives will coordinate them, ensuring they are on track to achieve company goals. Thus, it allows people within the company to specialize in a particular area.įunctional structures work best in companies where they deliver products or services continuously. They will usually divide their organization according to activities in the value chain. Businesses generally adopt a functional structure, especially in large companies. We will encounter functional structures in many sectors. Where is organizational structure by function common? Then, under the manager, there are assistant managers and staff. In other companies, it may be under the vice president, who oversees several managers in marketing functions such as sales, advertising, marketing research, and product planning managers. For example, a manager might serve as the head of a department. How positions within the marketing department are organized will vary greatly between companies. He is responsible for and reports to the marketing director and oversees several positions. Within the marketing department, a manager acts as the head. He has no authority over people outside their jurisdiction. ![]() He performs his specialist function by directing and coordinating the company’s marketing function. The marketing director represents the top position in this department. Now, let’s take the marketing department as an example. And each department will be under a functional director. They consist of the president director and functional director. The board of directors becomes the chief executive. After establishing the department, the company organizes the positions, sorted by seniority. Companies group their organizations into departments or divisions, such as operations, marketing, finance, and human resources. How does an organizational structure by function work?įunctional structure is the traditional method of arranging organizations. Finally, they are more concerned with their functional areas without considering other departments. In addition, each department operates and has independent targets. However, ego problems and poor coordination are weaknesses of this structure. People in the department become more and more skilled as they have specific jobs and tasks. The functional structure allows companies to achieve higher economies of scale and productivity through specialization. ![]()
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