Functional Organization




Infunctional organizational structure, the staff relationship isdetermined by the field of specialization. For instance, theorganizations often have independent departments dealing focused onengineering, marketing, and accounting. On the contrary, numerousparallel teams focused on producing a single service or productcharacterizes divisional organizational structure.

Iwould prefer working in a business using functional structure becausethe manager of each department requires having relevant skills in thespecialization field. This implies that the manager can effectivelyreview and rate the work of the staff performance. Similarly, he orshe can offer quality training and informed leadership to theemployees (Galbraith, 2002).

Second,the employees can move to a higher rank thereby, giving employees areason to stay longer in a given business. The remuneration increasesas the employees acquire additional experience. Each employee’scompany knowledge and expertise in the department is valuable to thecompany as it improves productivity. This makes the managementimprove incentives that in turn motivate the employees to performeven better.

Thestaff works with people specializing in a given field. Theenvironment provides an excellent atmosphere for lateral job movesand knowledge sharing that facilitates the acquisition of fresh jobskills. Moreover, coordination of staff members at department levelis easy (Galbraith, 2002).

Themanagerial efficiency is high because the employees conduct the samework repeatedly. Improved management of work leads to increasedprofitability in an organization (Galbraith, 2002).

Manyorganizations using functional organization often provide on-sitetraining because the companies often specialize on a limited range ofskills. For instance, the finance department can afford to traininexperienced employees since the development task is based on alimited range of skills. In addition, the employees also share theirrespective skills (Galbraith, 2002).

Workingin a divisional structure is disadvantageous because it may allowdevelopment of office competition and politics that distractemployees from focusing on essential matters such as a strategicinvestment of an organization’s resources (Galbraith, 2002).


Galbraith,J. R. (2002). Designingorganizations: An executive guide to strategy, structure, andprocess.San Francisco [u.a.: Jossey-Bass.