functional (adjective, func-tion-al, \ ˈfʌŋkʃənl \) organization (noun, or-gan-i-za-tion, \ ˌɔːrɡənəˈzeɪʃn \)
Definition: is a traditional type of organizational structure, in which the workers are divided into groups based on a hierarchy with each level having an authority figure they report to, but with all the managers being subordinates of a single top individual responsible for the entire company. When an enterprise uses a functional organization, all of its employees are divided based on the functions they perform in the company, which include accounting, marketing, personal relations, manufacturing, etc.
In a Sentence:
- As our CEO has always been a traditionalist, we’ve been using a functional organization from the very beginning.
- Due to the nature of our enterprise and the ever-increasing size of our staff, incorporating a functional organization was the most sensible thing to do.
- The director of a company that has a functional organization structure has to carefully decide which individual should be in charge of which department, as the managers make or break the entire system.
Synonyms and related words: line organization, chain of command, market-focused organization, matrix organization
