Functional org chart is a popular organizational diagram usually implemented by small business companies. In this structure, organization can be grouped into separated departments by areas of specialty or function. Those departments are vertical and disconnected from each other. One functional manager is going to regulate and control one department and all functional managers are supposed to report to one top boss namely the company president or CEO. Like other org charts, functional org charts have advantages and disadvantages. To make perfect the functional org chart, here we present you four tips for creating functional org chart.
1. Limit the Number of Layers to Three
Functional org chart would be quite a good choice for small companies but it might cause trouble in management and generate bureaucratism ending with severe damages in company’s advancement and profits earning as it expanses to a very large one. So it is necessary to make your functional org chart within 3 layers.
2. Encourage Communications Across Departments
There is a lack of communication across departments due to the fact that employees cluster together with those who are in the same departments and have few opportunities to mingle with colleges from other departments. Besides, cross-department communication is also hindered by the increasing competitive sense among departments. With regards to long-term development of company, people need to be encouraged to communicate across departments.
3. Develop Perspective of Overall Situation
Department may ignore the big picture of the whole company with too much focus on their own group goals rather than the entire company subjectives. For instance, there may be a desire by product department to update and optimize the last product but the overall company plan is to invest in new products instead. Since employees is lacking perspective of overall situation, they may lay important emphasis on goals that they believe are significant but which are not priorities for the entire company.
4. Motivate Employees
Usually, in functional org chat, workers have fixed tasks and routine work and they may get bored and upset by monotonousness and repeatability hence it’s better to motivate employees so as to keep them energetic to achieve high degree of performance.