Functional Organizational Structure
What Is An Organizational Structure In Business?
An organizational structure is when a business organizes its company into different departments based on areas of expertise. In addition, some companies opt for a functional organizational structure where decision-making and operations run through the functional department with a precise area of specialization. Also, these departments serve as functional units and are overseen by operational managers or departmental heads.
In each department, team members report the chain of command to department heads, reporting to the company’s top management.
Examples of departments in a functional organizational structure include strategic planning teams, marketing departments, human resource departments, and a research & development department.
Company Structures
Founder/CEO: A founder is a business professional who starts a company. In addition, founders use their innate skills and talents to build their companies from nothing. Also, they assume all risks associated with the venture and often use their capital to establish the company.
Strategic Planning Team: The strategic planning team should include board members, executives, and consultants. In addition, the strategic planning team is responsible for planning for the future and success of the company so the company can survive unforeseen calamities. Furthermore, the strategic planning team may hire outside talents to perform specific tasks for the company.
Management Teams/Departments: Management teams are a group of high-level associates hired by a business owner to take essential responsibilities within the business. Also, these individuals make up the highest levels of management within the company or industry, and each specializes in a different area of managing a business.
Departments that management teams may manage include
- Marketing Department
- Sales Department
- Human Resources Department
- Accounting Department
- Operations Department
- Production Department
- Logistics Department
- Administration Department
- Research & Development Department
- Sourcing Department
Leadership Team: The leadership teams manage smaller teams on various types of projects.
Customer Relations Management: Customer relations management includes the principles, practices, and guidelines an organization follows when interacting with its customers. In addition, the company’s customer relations management is responsible for customer service, managing customer reviews, and customer appreciation.
Company Culture: Company culture refers to the values, beliefs, and behaviors determining how employees and management interact, perform, and handle business transactions. In addition, the company ensures that employees are mentally and emotionally healthy. It also provides work ethics, establishes teamwork, and encourages respect for each other.
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