The functional organizational structure develops specialists rather than generalists. This means each unit hold different responsibility to produce the output of products or services that have been set. Functional Structure. 1.3 THE PRODUCT STRUCTURE OF SAMSUNG COMPANY The product is the output of an organization that can be produced in the form of goods or service . They are grouped based on their specific skills and knowledge. The functional structure is commonly found in small companies and also in large companies with single product line or narrow product ranges. Functional Structure: Under the functional structure, the organisation is designed on the basis of the basic functions, namely, production, finance and accounting, marketing and personnel. Generally, the functional manager has more authority than the project manager. This is a functional organizational structure. A hybrid organizational structure, the matrix structure is a blend of the functional organizational structure and the projectized organizational structure. Functional Structure: . A functional organizational structure is a structure used to organize workers. Functional organisational structure refers to the structure in which different departments are created on the basis of major functions performed in the organisation. 2. In the matrix structure, employees may report to two or more bosses depending on the situation or project. It could be that Apple is reasonably close to a pure expression of a functional org, though as with an example like GE one should have visibility to more levels of … This enables a number of brands business units to operate under a single parent company. This is the simplest & the most prevalent form of organizational structure. The matrix structure followed by Starbucks coffee is one of the best organizational structure examples. 1. The primary reason for the firm’s success is its structure. Divisional structure is a type of organizational structure where operations are grouped based on divisions or separate product categories. Functional Organizational Structure In a functional organization structure, the project manager and all the resources work in the same company division, such as the sales and marketing department. It vertically structures each department with roles from the president to finance and sales departments, to customer service, to employees assigned to one product or service. Different organizational structures that combine to form Starbuck’s matrix structure are divisional structure, functional structure, and team-based structure. On the whole, This type of organization has been quite successfully followed in an enterprise like banks, insurance companies. This refers to the coordination of work between workers in a unit or the other. Divisional Structure. 2. This is a project-oriented organizational structure. Functional Structure This may create the problem of succession in top executives. For the division of work into various departments. Functional structure is organizational structure in which the organization is divided into smaller groups based on specialized functional areas such as production, marketing, and sales. The UI department supports the firm’s projects and doesn’t otherwise carry out much work on its own. Divisional Structure: The divisional organizational structure is divided either according to individual projects or different product categories. A matrix organizational chart looks like a grid, and it shows cross-functional teams that form for special projects. Advantages: Likewise, almost nothing is a pure functional organization except for single-product companies. 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