. Functional Structure
A functional structure is defined as a design that groups similar or related occupational specialties together. It is the functional approach to departmentalization applied to the entire organization.
Functional organizational structure is best for smaller companies or those that focus on a single product or service. Not designed to change quickly, functional structure works well in a stable environment where your business strategies are less inclined to need changes or updating. “Functional structures are the most common type of structural design and have evolved from the concept of high specialization, high control framework of manufacturing organization turned towards high efficient,” reports Practical Management website.
Structure
Functional organizations contain specialized units that report to a single authority, usually called top management. Refereed to as functional units or areas, these specialized units contain personnel with various but related skills grouped by similarities. Each functional unit handles one aspect of the product or service provided: information technology, marketing, development, research, etc. Top management is responsible for coordinating the efforts of each unit and meshing them together into a cohesive whole.