functional management


Structuring of an organization into departments or units on the basis of type of work performed.

Functional management
The business structure or hierarchy is organised traditionally under separate departments. Advantages As a result there are clear chain of commands and everyone knowing exactly what their role is. However this only happens if clear job roles are used to support this structure Disadvantages It may be less flexible and slower to respond to changes.

Matrix management The business structure is made up of different project teams working on separate tasks, each of which will include people from different departments and at different levels of the hierarchy. Very useful for project-based type of businesses e.g. advertising, as can meet customer needs quickly and can have specialists working together. Advantages Helps to create a coherent culture within an organisation as workers will take their ideas back to their functional areas. Disadvantages Also expensive because there will be re-training costs for the workers and potential resentment in the short run as the culture would change causing insecurity. Accountability A subordinate is directly answerably to his manager and can be held to account for any work that they have done.

and engineering). The organization is grouped by areas of specialty within different functional areas (e." Communication generally occurs within a single department.g. who communicates the request to the other department head. marketing.Advantages This should lead to firms having a clearer chain of command which should lead to better two-way communication. thus simplifying the chain of command . If information or project work is needed from another department. there could be confusion . Team members complete project work in addition to normal department work. Otherwise. The main advantage of this type of organization is that each employee has only one manager. Functional management is the most common type of organizational management. Disadvantages If employees are accountable to two or more. communication stays within the department. Some refer to a functional area as a "silo.. finance. a request is transmitted up to the department head.

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.