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Example of a functional hybrid organizational chart. An organizational chart, also called organigram, organogram, or organizational breakdown structure (OBS), is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. The term is also used for similar diagrams, for example ...
A functional organizational structure is a structure that consists of activities such as coordination, supervision and task allocation. The organizational structure determines how the organization performs or operates. The term "organizational structure" refers to how the people in an organization are grouped and to whom they report.
Functional organization is a type of organizational structure that uses the principle of specialization based on function or role. It allows decisions to be decentralized since issues are delegated to specialized persons or units, leaving them the responsibility of implementing, evaluating, or controlling the given procedures or goals.
Choosing a structure for a company is an important decision and must be strategically thought out because it could either aid or harm the making of business. The structure must also be a good fit for the type of activities, goals, and vision of the company. [3] The organizational structure is a reflection of how conveniently business is conducted.
Functional management is the most common type of organizational management. The organization is grouped by areas of speciality within different functional areas (e.g., finance, marketing, and engineering). Some refer to a functional area as a "silo".
LA Gear is an example of company that uses product departmentalization. Its structure is based on its varied product lines which include women’s footwear etc. Customer departmentalization - Grouping activities on the basis of common customers or types of customers. Jobs may be grouped according to the type of customer served by the organization.
The growth of self-directed cross-functional teams has influenced decision-making processes and organizational structures. Although management theory likes to propound that every type of organizational structure needs to make strategic, tactical, and operational decisions, new procedures have started to emerge that work best with teams.
Staff functional support is most advantageous when line and staff roles & responsibilities are clearly defined within the organization structure and all individuals are held accountable. Organizational lifecycle