Meaning of Functional Organisation:
A Functional Organisation is a type of organisational structure in which the entire organisation is divided into different departments based on specialized functions such as production, marketing, finance, human resources, and purchase. Each department is headed by a specialist who has expertise in that particular function.
In this type of organisation, employees perform tasks according to their area of specialization, and each functional head has authority over his or her department. This structure focuses on division of work and specialization to increase efficiency and productivity.
Features of Functional Organisation:
1. Division of Work:
The organisation is divided into different functional departments.
2. Specialization:
Each department is managed by an expert in that particular field.
3. Authority Based on Function:
Functional managers have authority over employees related to their specific function.
4. Improved Efficiency:
Since specialists handle tasks, work is done more efficiently and professionally.
Example:
In a manufacturing company, there may be separate departments for Production, Marketing, Finance, and Human Resources. Each department is managed by a specialized manager.
Conclusion:
Functional organisation is a structure based on specialization and division of work, where each department focuses on a specific function to achieve organisational goals effectively.