What is functional departmentation or structure

 Functional departmentation or structure 

Defination of functional structure 

Under this method the job related common functions are kept under particular department. This structural is suitable when organisations are producing one line of product, once to have functional specialisation, easy supervision, etc.

When tasks and activities are organised into groups according to their functions or specialised positions inside the corporation, it is known as a functional structure. Each division concentrates on a certain area of the company, such as marketing, finances, or operations. Although this organisational structure can improve efficiency and knowledge within each department, there may be communication problems between them.

This is perhaps the most logical and simple form of departmentation.
Normally separate departments are created for all the key activities of the business.

Advantage of functional structure:

1. Functional / occupation specialisation :


Under functional structure the job related common functions are kept under particular department and perform repeatedly as a result its leads to functional specialisation.

2. Easy coordination



Under functional structure the activities of one department is interdependent or interlinked with the activities of another department the centre dependency lead to coordination among different departments.

3. Easy supervision



Under functional structure is department perform their activities related to one function only as a result easy supervision

4. Effective training



Under functional structure training of employees become more easy as they are trained in limited type of skills only.

5. It helps in increasing managerial efficiency

Under functional structure job related common functions are kept and perform repeatedly which leads to specialisation and specialisation improves efficiency.


However, it's important to note that functional structures also come with disadvantages, such as potential communication issues between departments, slower response times due to hierarchical decision-making, and difficulties in adapting to rapidly changing environments. The suitability of a functional structure depends on the organization's goals, size, and industry.


Disadvantages of functional structure.


1. Functional empire

Under structure the department become a specialised in their own way only as a result day fail to see the prospect of all organisations organisation goal may not achieve

2. Difficulty in coordination

When the department become two large than coordination decreases and result in delay decision.

3. Difficulty to fixed accountability

Under functional structure, the activities of one department is interdependent on activities of another department as a result it becomes difficult to hold answerability of particular department.

4. Inflexibility


Under functional structure, employee get training of one function only, as a result in case of necessary employees of one department cannot be shifted or transfer to any other department.

Suitability


Functional structure is suitable for
  • Division of work as per function
  • In case of diversified activities
  • In case of functional specialisation

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