A functional organization has a traditional organizational structure in which each functional department, such as engineering, marketing, and sales, is a separate entity
Depending on the size of the organization, there could be a hierarchy within these manager and other designations like director, managing director etc could be available who in turn report up to the CEO or the owner of the company.
The scope of a project in a functional organization is usually limited to the boundaries of the functional department. Therefore, each department runs its projects largely independent of other departments. When a communication needs to occur between two departments, it is carried through the hierarchy of functional managers.
For Ex: If someone from the Sales team needs to communicate with someone in the Marketing team, he would route it through the Sales Manager who in turn will route the information through the Marketing Manager.
All the managerial power or authority in simple terms, in a functional organization is vested in the functional managers, who control the team members' performance evaluations, salaries, bonuses, hiring, and firing.
functional structure
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What are the advantages and disadvantages of mechanistic structure
· The Matrix Organization is at the center of a continuum between purely functional type organizations and purely product type organizations. On the functional end of this continuum is the traditional hierarchical structure divided along functional, lines such as marketing, production, and accounting. On the other end of this continuum is the pure product organization. Here, a separate team is formed, duplicating the functional structure but organized under a product Advantages: · Clear project focus · Flexible staffing · Adaptability to management needs and skills · Staff development opportunities · Adaptability to management changes Disadvantages: · Built in conflicts · Resistance to termination · Complex command and authority relationships · Complex employee recognition systems
An organization can have one of the following structures:- Functional Organizational Structure- Matrix Organizational Structure
Here are 3 form or Project Management Structures:- Functional Organization Structure- Matrix Organization Structure- Project Organization Structure
From the perspective of structure, organizations fall into three categories: 1. Functional organizations 2. Projectized organizations and 3. Matrix organizations. Functional Organizations A functional organization has a traditional organizational structure in which each functional department, such as engineering, marketing, and sales, is a separate entity Projectized Organization A projectized organization's structure is organized around projects. Most of the organization's resources are devoted to the projects Matrix Organization A matrix organization is organized into functional departments, but a project is run by a project team, with members coming from different functional departments The matrix organizations are generally categorized into a strong matrix, which is closer to projectized structure; a weak matrix, which is closer to functional structure; and a balanced matrix, which is in the middle of strong and weak.
A matrix organization is organized into functional departments, but a project is run by a project team, with members coming from different functional departments. On the spectrum of a project manager's authority, matrix organizations are in the middle of two extremes: functional and projectized organizations.
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As soon as there is more than one person involved, an organization will have a functional structure; each person will be doing something different. Since people doing the same or similar functions will want to cooperate, it makes sense to create a functional structure.
-delay in decision making - inter dependent factor Save
Having a cross functional team in your organization will help the organization when employees stay out of work. With more people trained to share jobs, any employee can fill in for an absent employee.