What are the characteristics

of a functional organization
structure ?
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A
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Organization is a process of welding together a frame work of

positions which can be used as a management tool for the most
effective pursuit of the goals of an enterprise. It is regarded as one of
the most fundamental function of the management because in
organization, the work is divided and a structural plan is prepared;
The position of an organization can be compared to that of a human
body. As human body is divided into different system like digestive
system, nervous system, vascular system and the respiratory system.

All these systems function under the control of nervous system.

Similarly in organization there are various departments and each
department performs different functions but all these departmental
functions are co-ordinated to attain the organizational end.
Organization is a management process by which people, functions and
physical factors are brought together to form a manageable unit.

Organization is a group of people who are co-operating under the

direction of leadership direction of leadership for the accomplishment
of a common end.

The above definitions of organization tells us the following features.

1. It is a function of the management.

2. It consists of a group of individuals which may be large or
small.
 3. The group of individuals work under the direction of
executive leadership.
4. It establishes definite relationship between the divided
units.
5. It is established for the attainment of common objective.

Organization structure refers to the system of staff organization

because every staff in the organization must know his status and
position in the organization. There are four forms of organisation
like, line organisation, functional organisation, line and staff
organization and committee form of organization. Line organization
is the oldest and simplest form of organisation. In this form of
organisation a superior exercises direct supervision over a
subordinate. In functional organization the management is divided
into various major functions. Thus specialists services are given by
functional organization. The line and staff organization is a
combination of both line and functional organization. In committee
form of organisation, committees are formed which help in
management process.

Functional system refers to a system of organisation in which

functional departments are created at all levels to deal with the
problems of the business. The management is divided into number of
functions like purchasing, selling, production, financing, personnel
and research and development. The credit for the growth of
functional organization can be traced back to Taylor who is regarded
as the father of scientific management. In this form of organization
authority does not flow from top to bottom as it is found in line
organisation.

In this the entire organisation is divided into different sections and

each section is in the charge of a specialist who has a complete
control over his function. He is regarded as functional manager.
According to Taylor production function is separated from office
function. The clerical aspects of functions are handled by four persons
like time and cost clerk, instruction card clerk, route clerk and shop
disciplinarian.
In framing the structure of functional organisation, the following
points are to be kept in mind.

(a) The inter-related functions are allotted to each department.

(b) An activity is allotted to each functional department.

(c) An activity allotted to each department can-not be allotted to

another departments.

(d) Functional authority is confined to functional advice.

(e) It provides expert service at each functional department.

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