In a functional structure, you are going to have a static job, whereas in other types of organizational structures, you might have dynamic roles.

Your working style is contingent on the sort of organization you are working in. The kind of organization dictates your responsibilities, function, working culture, and almost everything else.

In a functional organization structure, you’ll report to the functional manager, whereas in other types of constructions, you’ll report either to the project manager or many managers.

In a project based organization structure, you report to the project supervisor, while in a matrix organization structure, it depends upon the form of matrix. 

Your working style, career development course, and the reporting system is all dictated by the structure of your firm.

Functional Structure:

A functional structure is a hierarchical organization structure wherein individuals are placed into groups based on their subject of specialization.

These folks are supervised by a functional supervisor with experience in the exact same field. A company that uses an organizational structure based on business activities such as marketing, finance, and R&D uses functional groupings.

This experience helps him to efficiently use the abilities of workers, which ultimately helps organizations in achieving its business goals.

The organizational chart of the functional organizational structure shows the president, VP, finance department, sales department, customer support, administration, etc. 

Each department may have a department head who’ll be accountable for the performance of the section.

This aids the organization controls the quality and uniformity of performance. These numerous departments are sometimes referred to as silos.

This means that the system is vertical and disconnected. The communication flows throughout the department heads to the top management.

Here, all authority stays with the functional supervisor. Typically, the position of the project supervisor doesn’t exist in this kind of organization structure.

Even when this position is present, the role of the project manager will probably be minimum, and he’ll require authorization from the functional manager before making any decision. 

The project manager might have the name of a coordinator or a sender. The functional organization structure is acceptable for an organization that has ongoing operations and produces standard products or merchandise, like manufacturing industries.

functional organizational structure

Pros of the Functional Structure

Below are a few advantages of the functional organization structure:

  • Employees are grouped by their knowledge and skills, which helps achieve the maximum degree of performance.
  • Employees are extremely skilled. Efficiency is achieved because they’re experienced at the exact same work plus they perform excellently.
  • Their functions and the duties are fixed, which facilitates the responsibility of the work.
  • The hierarchy is apparent and employees do not have to report to several managers. Each worker reports to her or his functional supervisor, which reduces the number of communication channels.
  • There is no duplication of work because every department and every worker has a fixed job responsibility. 
  • Employees feel secure, and therefore they perform well without anxiety.
  • As there’s a feeling of job security, employees are usually loyal to the organization.
  • Employees have a clear career development course.
  • Cooperation and the communication is effective within the department.
organization structure

Cons of the Functional Organization Structure

Following are a few disadvantages of the functional structure:

  • Employees might feel bored because of the monotonous, repetitive type of work and might lose enthusiasm for the job.

  • Conflicts may arise if the performance evaluation system isn’t properly managed. By way of example, an employee might feel demoralized when a lesser performing employee is encouraged.

  • A highly skilled worker is expensive to hire.

  • The departments possess a self-centered mindset. The functional director pay more attention to his department, he generally doesn’t care about other departments.

  • Communication is feeble among the departments, which induces poor inter department coordination. This decreases flexibility and innovation.
  • Furthermore, there’s a lack of teamwork between the different departments.

  • Employees might have little concern and knowledge about events outside their department. This causes barriers to communication and cooperation.

  • The functional structure is rigid and adapts to fluctuations slowly.

  • Delays often occur in decision making due to bureaucratic hierarchy.

  • Generally, the functional supervisor makes decisions automatically without consulting with his team members. This might not necessarily works in favor of the organization.
  • When the organization becomes larger, the functional areas can become difficult to handle because of their size.

  • Each department might start behaving like a little business with its amenities, culture, and management style.

  • Functional departments may be diverted by departmental goals, and concentrate on them as opposed to the organizational goal.


The functional structure helps organizations run their business and make a profit. This kind of organizational structure create some service or product on a continuous basis.

Here, workers feel secure, they work efficiently, and have a tendency to be highly skilled. The project manager does not have a significant role in a functional structure of the organization.

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