#Accounting department organizational chart sample update#
It is easier to monitor and update the training of employees when they are focused on narrow functional areas. Enhanced SpecializationĪ company can use this approach to cultivate a group of extraordinary specialists who can strongly impact the functions of the company. It is easier to set up career paths for employees and monitor their progress toward the goals outlined for their functional areas. There is a very clear chain of command in this structure, so everyone knows which decisions they are allowed to make, and which ones to hand off to their supervisors. When employees are allowed to focus on one specific functional area to the exclusion of all else, they can achieve significant efficiencies in terms of process flow and management methods. Of the following advantages, the first one is the most important the functional structure can introduce a great deal of efficiency into the operations of a business. Accordingly, he clusters employees into the following functional areas:Īdvantages of the Functional Organization Structure Example of the Functional Organization StructureĪBC International has just passed $10 million in sales, and its president believes that this is a good time to restructure the business to improve efficiencies through job specialization. In other words, this system works well in a stable environment. Minimal changes due to fashion or other changes in taste or technology
Minimal amount of entirely new product line introductions Reduced level of change within the industry Large volume of standardized product or service sales It is particularly effective in the following situations: The functional organizational structure is the dominant mode of organization in larger companies, since these entities deal with such large sales and production volumes that no other form of organizational structure would be nearly as efficient. For example, there may be a marketing department that focuses solely on marketing activities, a sales department that only engages in sales activities, and an engineering department that only designs products and manufacturing facilities. The functional organizational structure organizes the activities of a business around areas of specialization. What is the Functional Organizational Structure?
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