Functional organisational structure

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
Staff are managed and report to a specialist who understands their workCoordination can be difficult
There is specialisationOrganisational strategy can be sacrificed in pursuit of functional department strategies
There is room for advancement and promotion for people in each functional departmentNot 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.

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