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What is meant by 'functional structure' of an organisation?

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प्रश्न

What is meant by 'functional structure' of an organisation?

Explain the concept of 'functional structure' of an organisation.

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उत्तर

A functional organisational structure is one wherein the activities of a similar nature are grouped together in departments, and all departments in turn report to a head. For example, an organisation can have numerous departments such as production, human resources, finance and marketing, each of which in turn reports to a coordinating head.

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अध्याय 9: Organising - QUESTION BANK [पृष्ठ २७२]

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Specialisation


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Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions.

Situation 2: There are similarities in the tasks performed within the same department.

Situation 3: The profit is increasing month by month due to the success of this structure of the organisation.

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  2. State two benefits and two limitations of the identified structure highlighted in the above case.

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