Question

A company has five hundred workers. The management has created a structure in which each worker has a clearly defined role and responsibility. Identify the type of organisation described above. State any three of its features.

Answer 1

A functional organisation is the kind of organisation mentioned above. Employees are grouped according to their tasks or specialised functions inside the organisation in a functional organisational structure. Each employee reports to a certain manager or supervisor and has a clearly defined role.

Three features of a functional organisation:

1. Specialization: Workers are organised into departments, such as marketing, finance, human resources, etc., according to their specialised duties or functions.
2. Clear Hierarchy: Every employee reports to a department head or supervisor in a clearly defined chain of command.
3. Efficiency: Functional organisations are typically effective in terms of job completion and productivity since employees specialise in particular tasks.