Functional organisational structure
ZIMSEC O Level Business Studies Notes: Functional organisation structure
- This is the traditional form of organisational structure
- The organisation’s tasks and operations are divided into groups/departments based on organisational functions/function areas
- Examples of such functions include marketing, finance, human resources, production/operations and IT (Information Technology)
- Each department is usually headed by a functional head who reports to a given central authority
- Each department focuses and specialises on its own function
| Advantages | Disadvantages |
|---|---|
| Staff are managed and report to a specialist who understands their work | Coordination can be difficult |
| There is specialisation | Organisational strategy can be sacrificed in pursuit of functional department strategies |
| There is room for advancement and promotion for people in each functional department | Not suitable for very large organisations |
| It is easy to implement and understand | |
| Suitable for a wide range of organisations | |
| Can be used by organisations of different sizes |
To access more topics go to the O Level Business Notes page.
