Therefore, functional organizational structures must be managed using a hierarchical structure. Each sub-responsible will deal with different aspects of this same department such as hiring, payroll management, staff training, etc.Īll these managers work in harmony with the human resources department head in order to achieve the overall goals of the HR department. The larger the organization, the more levels it will have the functional unit.įor example, the HR department can have an HR head manager, under which we find additional HR managers. In a large organization, the heads of the individual functional units may have other operational managers working under them and reporting directly to them. What is a functional organizational structure?Ī functional organizational structure is composed by project team members allocated according to the different functional units of an organization.Ī typical organization has different functional units, such as the Human Resources, Finance, Marketing, Sales, Operations, IT, Administration, etc.Įach unit is managed by a functional manager who reports to the strategic direction of the organization.
The role of the project manager within a functional organizational structure.Disadvantages of a functional organizational structure.The advantages of a functional organizational structure.What is a functional organizational structure?.
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