Functional Organization :
Functional Organization contains specialized units that report to a single authority. Specialized units contain personnel with various but related skills grouped by similarities. Each unit handles one aspect of the product or service provided. Management is responsible to coordinate and mash all units’ efforts.
Simplicity - Focus on a single product or service.
Stablity - Business strategies are less inclined to need changes or updating.
Specialization - Employees grow within one specified field so that they can perfom well. Also, specialized units report only to a single authority, which is different from Matrix Organization
Communication - ...view middle of the document...
g., functional supervisors focus on hiring, training, managing employees while project supervisors focus on project goals); effective utilization of resources since managers know how to best use their resources
• Specialization - employees can focus and specialize in a particular field
• Breadth of skill - employees are communicate frequently with others from other functional areas through project teams (i.e., they an develop more skills than if they are stuck in their own functional field)
• Communication - information and resources travel more fluidly through functional areas through projects that extend across functional areas; frequent communication enhances productivity and allows for quick decision-making; inter-disciplinary specialization occurs through frequent communications
• Flexibility - human resources shared flexibly across projects; easily adjust to changing environment of business world
• Increased Motivation - everyone is involved in many parts of the company,...