What characterizes a Functional Organisational Structure?

A Functional Organisational Structure is characterized by the division of employees based on their specific skills and areas of expertise, which allows for a clear hierarchy and streamlined operations within departments. In this structure, employees report to a single superior or manager, promoting clarity in lines of authority and accountability. This specialization helps enhance efficiency and productivity, as each department can focus on its particular function without the distractions that might arise from working in a team environment.

The approach is beneficial for organizations that require a high degree of specialization and expertise. Each specialized department can develop its own processes and procedures, leading to increased competence in that specific area. This clarity in reporting structures contrasts with other organizational models where teams may work across functions or report to multiple managers, which can sometimes create confusion and a lack of direction.