What is functional organisation and what are its features?

[rms]

What is meant by functional organisation? explain its features.

[nbm]

In the functional organisation all activities in the enterprise are grouped together according to certain
functions like production, marketing, finance and personnel and are put under the charge of different
persons. The person incharge of a function follows it wherever it goes throughout the organisation
and also controls the individuals working in that functional area. This means that if a person performs
several functions, he will be under the direct change of several persons in charge of these functions. The
functional incharge is expert in his own field. It is rare to find a pure functional organisation. However,
many business enterprises follow functional plan to some extent to carry out the primary functions.

(1) The work is divided into specialised functions.

(2) The superior specialist commands an authority and therefore gives orders relating to his specific
functions throughout the line.

(3) The specialist must be consulted before any decision is taken on matter relating to his
specialized area.

(4) The responsibilities of functional authority are mainly discharged by other executives.

(5) It is flat topped organisation in comparison to line organisation. A specialist can supervise a large
number of employees while in line organisation, a specialist supervises a limited number of
subordinates.