Features of Functional Organisation

Features of Functional Organisation:

Functional organisation has certain characteristic features. The main features of functional organisation are:

(1)  Functional organisation is a complex type of organisation when compared to line organisation and line and staffing organisation.

(2)  There is specialization in functional organisation, as the work of the concern as a whole is divided into different specialised functions like production, purchasing, marketing, finance, personnel relations, etc. and each specialised function is entrusted to a functional expert or specialist.

(3)  In this type of organisation, the line executive receives instructions not only from his line boss but also from one or more specialists. For instance, a foreman in the production department may receive orders and instructions from the superintendent, who is his line boss, and also from the specialists like the personnel manager, marketing managers, financial manager, etc.

(4)   Under this system, the principle of unity of command is not observed, as a single worker has to get instructions from more than one specialist.

(5)  In this type of organisation, more importance is given to staff specialists or functional experts. The functional experts are given even some line authority.

(6)  In this type of organisation, ~ere are three type of authority relationships, viz., (i) line authority relationship, (ii) staff authority relationship and (iii) functional authority relationship.

(7)  Under this type, the executive have to perform limited number of operations.