A functional structure $($or U$-$form for unitary structure$)$ groups people into different departments based on the type of work they do$,$ or their function. Each function serves the entire organization.

Functional structure shows a rectangle that branches into human resources manufacturing accounting which further leads to $3$ rectangles.

Advantages

Disadvantages

Uses resources efficiently, allows for economies of scale Functional departments may not communicate with each other

Employees get the training necessary to acquire in$-$depth skills Structure is slow to change, making it hard to innovate

Senior managers can direct and control work Centralization causes delays in decision making

Suppose that you were running an engineering company. You want to assign employees to particular engineering projects, but you also want someone who knows about their functional area to supervise them. What kind of work structure would you choose?

Divisional

Matrix

Functional

Virtual Network

In which of the following organizational structures do central managers have the LEAST amount of control over the work that is done?

Functional

Matrix

Virtual Network

Divisional

This organizational structure is also known as an M$-$form or decentralized structure.

Team

Divisional

Matrix

Functional