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The functional org chart is one of several common organizational structure diagrams many companies have adopted and a clear depiction of how people are organized. Wherein employees are segmented based on their skills and specialties. Usually, people are grouped into departments and made to report to and follow their department manager. Each functional manager is responsible for supervision and direction with his or her department subordinates. This article aims for an explanation of functional org chart by five characteristics.

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It Fits Small Companies Well

As for small companies, their functional org charts get low hierarchy layers, therefore, it’s concise and clear which can make the company operate efficiently. Functional org chart performs well when the hierarchy layer is less than four. While as the company expands to a very large one,  functional org chart would be much more complicated and redundant even cause bureaucracy which would make it hard to management and organization to respond to outer market quickly.

Functional Org Chart Baic Concept

The functional org chart is a very common organizational structure that many companies follow, which is supposed to divide people into several departments according to peoples’ specialties and function they perform in the company. Persons with rich experience and profession would be appointed as department manager authorized to be totally responsible for department’s affair such as training, the task allocating and promotion.

Definition of Functional Org Chart

The functional org chart divides people into different groups based on expertise and specialty. This structure gets involved in a great amount of process standardization within a company, with the real decision-making authority centered at the top of the organization. Employees in one department are responsible only for relevant tasks. For instance, an HR department that focuses only on recruitment & training, a sales department that only engages in sales activities, and an engineering department that only designs products and produces facilities.