Functional Structure in Organisational Design

Organisational design is concerned with the way in which an organisation is structured to achieve its goals. The functional structure is one of the most common types of organisational design. It groups similar or related jobs together based on their functions or roles.

Definition of Functional Structure

Functional structure is an organisational design that groups similar or related jobs together. In this type of structure, jobs are grouped based on their functions or roles. For instance, all marketing jobs are grouped together, all accounting jobs are grouped together, and so on.

Features of Functional Structure

The following are the key features of the functional structure:

1. Job Grouping: Jobs are grouped together based on their functions or roles.

2. Specialisation: Employees are specialised in their respective functions.

3. Coordination: Coordination between different functions is critical for the success of the organisation.

4. Clear Hierarchy: There is a clear hierarchy of authority and responsibility.

Advantages of Functional Structure

The following are the advantages of functional structure:

1. Specialisation: Employees are specialised in their respective functions, which improves their efficiency and effectiveness.

2. Clear Hierarchy: There is a clear hierarchy of authority and responsibility.

3. Better Coordination: Coordination between different functions is better, which leads to better decision-making.

Disadvantages of Functional Structure

The following are the disadvantages of functional structure:

1. Lack of Flexibility: Functional structure is less flexible than other types of structures.

2. Communication Barriers: Communication barriers may arise between different functions.

Conclusion

Functional structure is an organisational design that groups similar or related jobs together based on their functions or roles. It is characterised by specialisation, clear hierarchy, and better coordination. However, it has some drawbacks, such as lack of flexibility and communication barriers.