Functional management is the most common type of organizational

management Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities ...

. The organization is grouped by areas of speciality within different functional areas (e.g., finance, marketing, and engineering). Some refer to a functional area as a "silo". Besides the heads of a firm's product and/or geographic units the company's top management team typically consists of several functional heads such as the chief financial officer, the chief operating officer, and the

chief strategy officer A chief strategy officer (CSO) is an executive that usually reports to the CEO and has primary responsibility for strategy formulation and management, including developing the corporate vision and strategy, overseeing strategic planning, and leadin ...

. Communication generally occurs within a single department. If information or project work is needed from another department, a request is transmitted up to the department head, who communicates the request to the other department head. Otherwise, communication stays within the department. Team members complete project work in addition to normal department work. The main advantage of this type of organization is that each employee has only one manager, thus simplifying the

chain of command A command hierarchy is a group of people who carry out orders based on others' authority within the group. It can be viewed as part of a power structure, in which it is usually seen as the most vulnerable and also the most powerful part. Mili ...

.Organization Structures in Project Management
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References

{{DEFAULTSORT:Functional Management Management by type

See also

References