Functional Organizational Chart

Functional organizational chart is structured with few managers at the top and most people at the bottom, organized by the tasks they performed.

Job classifications were well defined and authority was top-down. Control was maintained by setting rules and establishing standard procedures.

For example, an executive may report to the president. Companies that use functional organizational chart split their departments into functional areas, such as accounting, finance, develop, marketing and law.

Functional organizational structure includes vice presidents, executives, directors and managers in a company.

functional organizational structure

As opposed to small organizational structures, functional organizational charts are useful for a large degree bigger companies.

The functional structure groups employees together based upon the functions of specific jobs within the organization. For example, a software development company can use the following functional organizational chart:
President
- Sales Department

- Engineering Department

- Customer Relations Department

- Accounting Department

- Administration Department

The following example organizational chart shows a functional organizational chart of a company.
Functional Organizational Chart

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