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.
As oppose to small organizational structures, functional organizational charts are useful for relatively big a large degree of companies.
The functional structure groups employees together based
upon the functions of specific jobs within the organization. For example, a
software develop company can use the follow functional organizational chart:
- Sales Department
- Engineering Department
- Customer Relations Department
- Accounting Department
- Administration Department
The following example organizational chart, showing a
organizational chart in a company.
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