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The importance of functional organizational structure is to provide order and accountability to an organization. By creating specific job categories for specific tasks, the efficiency of the labor needed to accomplish the tasks increases. It would not make sense to have your Accountants repairing pumps at your facility while your maintenance staff shipped out product. Dividing the labor by function then adding employees to the organization by matching their skills with the function needed is the way an organization can experience the highest level of efficiency.

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