Functional Organization
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Functional Organization
Functional organization is a type of organizational structure that uses the principle of specialization based on function or role. It allows decisions to be decentralized since issues are delegated to specialized persons or units, leaving them the responsibility of implementing, evaluating, or controlling the given procedures or goals. See also * Departmentalization * Organization design Organizational architecture has two very different meanings. In one sense it literally refers to the organization's built environment and in another sense it refers to architecture metaphorically, as a structure which fleshes out the organizatio ... Types of organization {{org-stub ...
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Organizational Structure
An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. Organizational structure affects organizational action and provides the foundation on which standard operating procedures and routines rest. It determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization's actions.Jacobides., M. G. (2007). The inherent limits of organizational structure and the unfulfilled role of hierarchy: Lessons from a near-war. Organization Science, 18, 3, 455-477. Organizational structure can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. Organizations are a variant of clustered entities. An organization can be structured in many different ways, depending on its objectives. The structure of an organization will determine the modes in ...
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Decentralisation
Decentralization or decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group. Concepts of decentralization have been applied to group dynamics and management science in private businesses and organizations, political science, law and public administration, economics, money and technology. History The word "''centralisation''" came into use in France in 1794 as the post-Revolution French Directory leadership created a new government structure. The word "''décentralisation''" came into usage in the 1820s. "Centralization" entered written English in the first third of the 1800s; mentions of decentralization also first appear during those years. In the mid-1800s Tocqueville would write that the French Revolution began with "a push towards decentralization... ut became,in the end, an extension of centralization."Vivi ...
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Delegation
Delegation is the assignment of authority to another person (normally from a manager to a subordinate) to carry out specific activities. It is the process of distributing and entrusting work to another person,Schermerhorn, J., Davidson, P., Poole, D., Woods, P., Simon, A., & McBarron, E. (2017). ''Management'' (6th ed., pp. 282–286). Brisbane: John Wiley & Sons Australia. and therefore one of the core concepts of management leadership. The process involves managers deciding which work they should do themselves and which work should be delegated to others for completion. From a managerial standpoint, delegation involves shifting project responsibility to team members, giving them the opportunity to finalize the work product effectively, with minimal intervention. The opposite of effective delegation is micromanagement, where a manager provides too much input, direction, and review of delegated work. Delegation empowers a subordinate to make decisions. It is a shifting of decision ...
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Departmentalization
Departmentalization (or departmentalisation) refers to the process of grouping activities into departments. Division of labour creates specialists who need coordination. This coordination is facilitated by grouping specialists together in departments. Popular types of departmentalization * Functional departmentalization - Grouping activities by functions performed. Activities can be grouped according to function (work being done) to pursue economies of scale by placing employees with shared skills and knowledge into departments for example human resources, IT, accounting, manufacturing, logistics, and engineering. Functional departmentalization can be used in all types of organizations. Group activities in accordance with the function of an enterprise. * Product departmentalization - Grouping activities by product line. It can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager. Each major ...
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Organization Design
Organizational architecture has two very different meanings. In one sense it literally refers to the organization's built environment and in another sense it refers to architecture metaphorically, as a structure which fleshes out the organizations. The various features of a business's organizational architecture has to be internally consistent in strategy, architecture and competitive environment. * Organizational architecture or organizational space: the influence of the spatial environment on humans in and around organizations. * Organizational architecture or organization design: the creation of roles, processes, and formal reporting relationships in an organization. Organizational space describes the influence of the spatial environment on the health, the mind, and the behavior of humans in and around organizations. It is an area of research in which interdisciplinarity is a central perspective. It draws from management, organization and architecture added with knowledg ...
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