Advantages Of Functional Structure

The structure of the company also has an influence on the organization. Organizing the company by department allows the employees to build strong teams. It also allows the teams to support each other’s daily functions. The structure of the organization also effects number of personnel hired into the company. The structure also effects departmental and organizational hierarchy. The departmental organization within the company is also important as it helps to determine departmental collaboration as well as the role of each person in the department (www.smallbusiness.chron.com 2013).

Organizational structure is the most crucial element for the success of any business. This is because of the way it facilitates and supports the management system of the organization. It is through the structure that specialization and differentiation are attained. For effective management of the employees, different firms employ different structures for the organization that is unique to its operation and the organization culture.

Functional structure provides a variety of benefits to orgnisations. Fist of all, a functional structure supports efficient resource use. It is easy for staff to shift between projects from the same department. It is a small kiwi restaurant. Our human resource, money and material are limited, so using functional structure will help us save money and the efficiency of resources can be maximized. Secondly, it also encourages the development of expertise of the members within function. For example, as marketing director of our restaurant, you might develop specialized skill in advertising, market researching and planning. Employees clearly know what they should do and their clear career path within function. On the other hand, Staffers have the opportunity to move up within their functional areas, which they stay long-term. The company gets the advantage of their expertise and company knowledge over time.

There are the classifications of organizational structure, functional, project, and matrix. The structure of an organization can determine the utilization of the resources in a company and this can affect the way projects are handled. While organizations may adopt any or all three types, one type will be favored more than the others. A functional structure is a traditional method using a hierarchical chain as each employee has a documented superior. Team members are grouped by department and specialties (Institute, 2013).

Organizational structure helps companies specialize in certain activities of departments, each of which is capable of meeting their needs.

If large companies tend to use the hybrid structure for better efficiency ensuring an adequate amount of work is assigned at the right time to the right professionals, improving service levels to customers and colleagues, also improve standards organization as they are applicable to businesses with sufficient resources and sometimes even

2. Increased efficiency of the workers: This type of organisation make sure to enhance the efficiency as the workers operate under the expert and competent personnel and perform limited or given operations.

Firstly, functional departmentalisation coordinates work and employees through different units. Departmentalisation based on functions is used widely by organisations. Functional departmentalisation requires employees with the same knowledge, skills, and resources to allow them to work efficiently and promotes the development of greater expertise. For instance, departmentalisations according to functions are accounts, sales, marketing, production, operations and human resource department. This department has its advantages in where it allows work to be carried out by individuals who are qualified and skilled in the areas concerned. Besides that, it also reduces cost by decreasing work duplication and use of resources in the organisation. However,

Advantages of this structure: First, the use of personnel with greater flexibility, as long as the choice of a suitable functional departments as the project supervisor, the department will be able to provide professional and technical personnel required by the project, and technology experts can also be used by different projects and after completion of the work can go back to his original work; Second, when the project team members leave or leave the company, the functions can be used as the basis for maintaining the continuity of the project; third, functional department can provide a normal career path for

(Stanley M. Davis, Paul R. Lawrence, 1978) It is a combination of the functional and the divisional structures. The departments within a company are split up depending on their functions, while additionally being divided regarding the customer, the geographic location as well as the product itself. This brings managers and employees from different departments together to work hand in hand to accomplish their goals. (Christopher A. Bartlett, Sumantra Ghoshal, 1990)

structure; some of the disadvantages are an increase in the complexity of the chain of command.

Organizational structure allows guidance to employees by laying out the official reporting relationships that reign the workflow of the company. The formal outline of a organization 's structure makes it easier to add new positions in the company, as well as, providing a flexible and ready means for growth. Organizational structure also helps operational efficiency by making clarity to employees at all levels of a company. A thoroughly outlined structure provides a road-map for internal promotions, allowing organizations to create solid employee advancement tracks for entry-level workers.

A functional organization groups employees and activities by functions (e.g. marketing, engineering, finance). Each function is typically led by a function manager, who reports to the senior management of the company. A key advantage of functional organizations is that knowledge, skills and facilities for each functional

efforts: This concept helps management to divide all employees and their task description in work fields, predicated on their ability and in addition it assists business in growth of the corporation.

Company A’s operating in functional structure because it only makes shirts and blouses, and it needs to keep a high standard and a uniform production. In addition, the functional structure keep each department centralizes on its well-defined roles and operating procedures. The functional