Functional Organisation
In classic organisational form given in Figure, you can see that the grouping or structuring is done on the basis of common activities. In other words, all the people performing similar activities are grouped together. For example, all engineering activities are grouped together.
Benefits
- Availability of expertise through specialization
- No duplication of skill, personnel, resources.
- Provides professional developmeat opportunities for the members.
- Due to the concentration of legitimate authority, reward power, and coercive power in a supervisor, subordinates know to whom they should be responsive and from whom they should take guidance.
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| Functional Organisation |
Drawbacks
Although there is a focal point (responsible person) for the various functions (Engineering Manager, Manufacturing Manager), there is no focal point for all the functions and activities associated with a specific programmer/product/project.
Possibility of assuming the narrow functional interests by the members is very high. You frequently hear: "That is not my department's problem that is a manufacturing problem, not an engineering problem".
Example
Engineers may design a product to meet performance specifications, but may not appreciate the problems involved in manufacturing or maintenance of the same.
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