Tag Archives: Functional Org Chart

Types of Organizational Structure: Most Essential Ones for Your Business

Why We Need Different Types of Organizational Structure?

There may many answers to the question of how to successfully promote a brand, but effective types of organizational structure are the very basic determinants of such successes. A company with a well-structured framework would have a higher level of clarity and focus in terms of leadership, teamwork, and authority.

Most Essential Types of Organizational Structure

In reality, every business organization from a startup to the international enterprise has a specific organizational structure, but all of such types of organizational structure can be summarized as the following main formal categories. Each of them has both benefits and drawbacks, and may only work at sometimes depending on your company goals, organizational culture, salary structure and so on.

Functional

This type is also known as the bureaucratic organizational structure, which is mainly based on the specialty such as sales, finance, marketing teams and more. Each division has a manager or leader who oversees the overall department.

Read More
Differences Between Vertical and Horizontal Org Chart

Org chart can be classified into two types: vertical and horizontal, based on the style of the layout.  A vertical org chart looks like a pyramid. At the top is the CEO or company president. A single segment consists of a series of middle management and the manager who is responsible for their department. In contrast, a horizontal org chart has no middle management, hence normally all employees need to report to only one manager. Such type is also called the flat org chat. This article is going to explain the most significant differences between vertical org chart and horizontal org chart in terms of decision-making, collaboration, and communication.

Figure 1. Vertical Org Chart Example

Differences Between Vertical and Horizontal Org Chart

Read More
4 Tips for Creating Functional Org Charts

The functional org chart is a popular organizational diagram usually implemented by small business companies. In this structure, an organization can be grouped into separated departments by areas of specialty or function. Those departments are vertical and disconnected from each other. 

org chart software interface

Download the Free Org Chart Software
Read More
Five Common Characteristics of Functional Org Chart

The functional org chart is one of several common organizational structure diagrams many companies have adopted and a clear depiction of how people are organized. Wherein employees are segmented based on their skills and specialties. Usually, people are grouped into departments and made to report to and follow their department manager. Each functional manager is responsible for supervision and direction with his or her department subordinates. This article aims for an explanation of functional org chart by five characteristics.

edraw mac organizational chart software

Try it Free

It Fits Small Companies Well

As for small companies, their functional org charts get low hierarchy layers, therefore, it’s concise and clear which can make the company operate efficiently. Functional org chart performs well when the hierarchy layer is less than four. While as the company expands to a very large one,  functional org chart would be much more complicated and redundant even cause bureaucracy which would make it hard to management and organization to respond to outer market quickly.

Read More
5 Functional Org Chart Templates

The functional org chart is a traditional type of org chart many companies adopt. Under this organizational structure, workers are divided into several departments based on expertise and function each person can perform.

Workers are required to get involved in duties within their departments and they have to report to their functional managers only. The functional org chart does not have a project manager role, which differentiates from matrix org chart where employees need to obey orders from both functional managers and project managers if employees are working on some projects. The figures below are some common functional org chart templates.

Read More
What is Functional Org Chart

Functional Org Chart Baic Concept

The functional org chart is a very common organizational structure that many companies follow, which is supposed to divide people into several departments according to peoples’ specialties and function they perform in the company. Persons with rich experience and profession would be appointed as department manager authorized to be totally responsible for department’s affair such as training, the task allocating and promotion.

What is Functional Org Chart

Read More
Functional Org Chart: Definition, Pons and Cons

Definition of Functional Org Chart

The functional org chart divides people into different groups based on expertise and specialty. This structure gets involved in a great amount of process standardization within a company, with the real decision-making authority centered at the top of the organization. Employees in one department are responsible only for relevant tasks. For instance, an HR department that focuses only on recruitment & training, a sales department that only engages in sales activities, and an engineering department that only designs products and produces facilities.

Functional Org Chart: Definition, Pons and Cons

Read More
Advantages and Disadvantages of Hierarchical Organisational Structure

Hierarchical organizational structure puts the authority and responsibility on the top side of the company and makes them flow down from the top to the lowest level gradually. This model works like a pyramid and centralizes all power and duties on people who stand on the peak of the organizational structure. To assess this type of management style, it has advantages as well as disadvantages.

Read More
Main Disadvantages of Functional Organization Structure

In the functional structure, such as shown in the following Facebook organizational chart, functions are separated into different groups, resulting in some defects. Here are the major disadvantages you must consider:

facebook-organizational-structure

Create Your Own Org Charts!

Read More
Main Advantages of Functional Organization Structure

Functional organization structure is optimal for small businesses or companies producing standardized goods or services.

Functional Organization Structure Main Advantages:

  1. Offers a high level of specialization.
  2. Employees are possible to become experts.
  3. Staff working skills can be effectively improved.
  4. could enhance the work efficiency and productivity due to the specialized skills and technology.
  5. Employees are highly motivated as they see clearly their career path within the functional units.
  6. Functional specialization can minimize the cost of operation.
  7. Leads to high-quality technical problem-solving.

vertical org chart

Create Your Own Org Charts!

Read More
1 2