Functional organization

Functional organization is a type of organizational structure that uses the principle of specialization based on function or role.

It allows decisions to be decentralized since issues are delegated to specialized persons or units, leaving them the responsibility of implementing, evaluating, or controlling the given procedures or goals. When staff Specialists are incorporated into the organization and are placed upon the same (line) Authoritative level as the line executives. This type of structure is called functional organization or line and functional organization.

In this type of organization, the emphasis is on managing some function wherever the function may be performed in the enterprise. For example, the total work activities of an enterprise may be divided into various functions like purchases, production, marketing, finance, quality control.

See also

• Departmentalization
• Organization design