Question

What do you understand by functional organisation?

Answer 1

Every primary or fundamental function is arranged as a distinct department under the functional organisation. Basic or organic functions are those whose execution is critical to the organization's continued existence. For instance, the core operations of a manufacturing company include staff, sales, finance, and production. On the other hand, purchasing, selling, and finance are the main operations in a retail establishment. A main function may be broken down into smaller ones if needed. For example, the production department's operations can be divided into three categories: material processing, quality control, and repairs and maintenance. As a result, functional differentiation may occur at different levels of the hierarchy. As long as there is a solid foundation for additional distinction, the process can go on. Activities are most commonly grouped according to functional structure. It is present at some level in practically every organisation.