20 Examples of Functional Organizations

The discipline of organization administration It was gradually creating management models concerning to solve the problems that arose with respect to the current structures.

Frederick taylor He was one of the most important theorists of the organization, and observed that with the linear criteria of management of the organizations (pyramidal structure with a response only to the superior one) the maximum efficiency was not reached, because the specialization.

In contrast, he proposed a type of functional organization characterized by introducing specialists in the middle levels of the hierarchical structure. For example: Sheraton Hotels, Apple, French Bank BBVA.

Functional Organization

The functional organization it is characterized by bringing together the most qualified people to fulfill a function within the same department. It could be considered that the functional organization is the analogy of the principle of the division of labor but within the organization, since the responsibilities are no longer concentrated in a single person who must be knowledgeable and capable of everything perform the

business, but in a series of managers who share the authority and also the responsibility.

Like the linear organization, the functional organization pretends to have highly oiled communication mechanisms within the company, eliminating the number of intermediaries as much as possible. However, it is evident that the organization in departments with structures within them leaves open the possibility that objectives and priorities meet, and between departments there are not the same criteria about what the organization should do.

Some consider it necessary to have a intermediate organism that he is permanently managing the relations between the departments, and following the activity of each one, to avoid the emergence of problems of this type.

Advantages and disadvantages of functional organizations

Between the advantage evident of the organization of functional type can be seen, mainly, the overcoming of the linear way of organizing companies that seemed to be exhausted when Taylor observed the functioning. Organizations were able to specialize more, and thus obtain the highest efficiency from employees. The division of labor began to be planned and not accidental, and manual labor was separated from intellectual labor.

Regarding the disadvantagesIt is true that within the company it became more difficult to locate and establish responsibility, which affects discipline and moral of the workers, who sometimes consider that there are contradictions in the orders. The principle of unity of command, typical of the structure that seemed finished, still has some advantages regarding organizational responsibility, and its absence may motivate some kind of conflict in some cases.

The type organization mode functional it is highly recommended for large companies, and does not exist multinational organization do not apply it. However, also medium and small ones choose to use it. Here are some examples of such organizations:

Examples of functional organizations

1. Sheraton Hotels
2. Government of democratic countries (with ministerial structures, capable of making their own decisions)
3. CNN television network
4. Hewlett-Packard
5. Disney theme park
6. Manzana
7. Local radio channels
8. French Bank BBVA
9. Wal-Mart Supermarkets
10. Construction companies
11. Marriott hotels
12. Hilton Hotels
13. Real estate companies
14. Microsfot Corporation
15. Most cooperative enterprises
16. Multinational fast food companies
17. JP Morgan Bank
18. Automotive Fiat
19. Automotive Chevrolet
20. Bank of China ICBC