Everything you need to know about the functional organisational structure.

In the functional organisational structure, all activities in the enterprise are grouped together according to certain functions like production, marketing, finance and personnel, and are kept under the charge of different persons.

The person in-charge of a function follows it wherever it goes throughout the organisation and also controls the individuals working in the functional area.

Under functional organisational structure, various specialists are selected for various functions performed in an organisation. These specialists will attend to the works which are common to different functions of various departments.


Workers, under functional organisational structure, receive instructions from various specialists.

Additionally, learn about the features, characteristics, need, merits, demerits and suitability of functional organisational structure.

Functional Organizational Structure: Features, Need, Merits, Demerits and Suitability

Functional Organizational Structure – Suggestions of FW Taylor

FW Taylor suggested functional organisational structure in his theory of scientific management in support of his ‘one best way’ of doing things.

Taylor observed that one single foreman was overburdened with all the operations such as – task setting, time recording, quality inspection, disciplinary jobs and so on. He divided this job into eight functional foremen – four dealing with the planning task and four dealing with the implementation task. In other words, the planning and implementation tasks are divided to ensure the division of labour. He suggested the functional type of organisational structure as outlined in Figure 6.6.


The foremen involved in the planning task were:

a. Route clerk (identifies the route for the materials to pass on).

b. Instruction clerk (gives instructions to the workers about what to do and what not).

c. Time and cost clerk (identifies the time and cost for each job).


d. Shop disciplinarian (maintains the discipline on the shop floor).

Those involved in implementation were:

a. Gang Boss (assembles the machinery needed for the worker).

b. Speed boss (standardises and sets the speed of the machines).


c. Repair boss (repairs the machinery in case of breakdown).

d. Quality inspector (responsible for the matters relating to quality).

All were in charge of workers as far as their functional matters were concerned. The functional relationships between the functional foremen and the workers have been depicted in Figure, 6.6. From this, it can be noted that the functional type of organisation violates the principle of one employee, one superior. Taylor justified this stating that the functional foremen had clear demarcation of their duties and responsibilities, and hence, they were not overlapping.


The functional organisational structure can be evaluated in terms of the following merits and demerits:


a. Planned specialisation.

b. Separates activities related to planning and control.


c. Facilitates large scale production through standardisation.

d. The disciplinary controls are well defined.

e. Appropriate when there is a single product or service.

f. Offers clear career paths for functional specialists.


a. Ineffective controls as workers have more than one boss.

b. Very costly.

c. Calls for more coordination.

d. Less appropriate when an organisation diversifies.

e. No clear line of authority.

Functional Organizational Structure – Features, Merits and Demerits

It is not an independent form of organisation. Like line and staff organisation, it also makes use of line authority. The functional authority occupies a mid-way position between line and staff authority. It is a means of putting the specialists in top positions throughout the enterprise.

It confers upon the holders a limited power of command over the people of other departments concerning their functions. Functional authority remains confined to functional guidance of different departments. It helps in maintaining quality and uniformity of the performance of functional areas throughout the organisation.

F.W. Taylor, the father of scientific management, is credited with the development of functional organisational structure. As the name suggests, various activities of the enterprise are classified according to certain functions like production, marketing, finance, personnel, etc. and are put under the charge of functional specialists.

The functional in charge directs the subordinates throughout the organisation in his particular area of business operation. That means subordinates receive orders and instructions not from superior but from several functional specialists. In other words, the subordinates are accountable to different functional specialists for the performance of different functions.

Functional organisational structure has the following features:

(i) The organisational activities are divided into specified functions such as operations, finance, marketing, personnel etc.

(ii) Each functional area is put under the charge of a functional specialist. The specialist has the authority or right to give orders regarding his function wheresoever that function is performed in the enterprise.

(iii) Three types of authority relationships exist—line authority relationships, staff authority relationships and functional authority relationships.

(iv) It is a more complex type of organisation than line organisation, and line and staff organisation.

(v) It does not follow the principle of unity of command as is the case with line organisation.


(i) Specialisation – This system derives the benefits of specialisation. As every functional in charge is an expert in his area, will lead to specialisation and will, with the help of the subordinates, try to attain the specified objective.

(ii) Increased Efficiency – Functional organisational structure ensures enhanced efficiency as the workers operate under the expert and competent personnel and perform limited operations.

(iii) Executive Development – A functional manager is required to have expertise in one function only. This makes it easy to develop executives.

(iv) Reduction of Workload – Functional organisational structure reduces the burden on the top executives. There is joint supervision in the enterprise. Every functional expert supervises his area only.

(v) Scope of Expansion – Functional organisational structure offers a great scope for the expansion of business enterprise without any dislocation and loss of efficiency as each employee grows in his own speciality.

(vi) Flexibility – It is a flexible pattern of organisation. Any change in organisation can be made without disturbing the whole organisation. In the words of Louis A. Allen, “Function as a whole can be cut by eliminating positions at the lower levels without seriously affecting its total performance”.


(i) Conflicts – The authority relationship violates the principle of ‘unity of command’. It creates several bosses instead of one line authority. It leads to confusion in the minds of the workers whom they should obey and whom they should ignore.

(ii) Difficulty to Fix Responsibility – On account of the non-application of the principle of ‘unity of command’ it is very difficult for the top management to fix and locate the responsibility of a particular foreman. There arises a tendency for shirking of responsibility.

(iii) Expensive Structure – This pattern of organisation is quite expensive. Multiplicity of experts increase the overhead expenditure. The small organisations cannot afford to install such a system.

(iv) Lack of Discipline – Discipline among the workers as well as lower supervisory staff is difficult to maintain as they are required to work under different bosses and this may hamper the progress of the organisation.

(v) Lack of Co-ordination – Appointment of several experts in the organisation creates the problem of co-ordination and delay in decision-making especially when a decision problem requires the involvement of more than one specialist.

Functional Organizational Structure With Merits, Demerits and Suitability

The greatest shortcoming of the line organisation is that the line executive handles all matters pertaining to his department and is expected to guide and control his subordinates in the totality of all activities allied to his department.

This prompted F.W. Taylor, founder of scientific management to recommend functionalisation even at the shop floor level. According to him, it is unscientific to burden a foreman with the entire responsibility of running a department. His key idea was that the direction of work must be decided by functions and not by mere authority.

He introduced a system called “functional foremanship”. Under this, the organisation is based on the principle of separation of planning from execution and specialisation. For every kind of work, there should be a separate department and it is further subdivided suitably and staffed by a specialised capable head. The basis of division is the functions and, therefore, the structure created around the function is called “functional organisation”.

Taylor concentrated on the shop floor and analysed the activity of a foreman. His observation was that an able foreman should have such qualities as talent, education, tact, grip, judgement, special knowledge, manual dexterity, energy, honesty, good health, etc. He argued that to have all these qualities amounts to super-human abilities. Hence, he recommended eight specialists, instead of one foreman, of which four will be in the planning department and the remaining four on the shop floor.

i. Planning Department:

(a) Route Clerk- This person is responsible for planning the work, laying down the procedure for the performance of a particular part of the work, preparing a schedule and sequence of work as it passes through the various stages of production.

(b) Instruction Cards Clerk- He specifies the tools to be used in the performance of a job, the best method of doing an operation the standard time of performance and the speed with which machines are to be worked. He makes instruction cards, giving all the necessary instructions for the performance of the work with reference to a time limit.

(c) Time and Cost Clerk- The routine and scheduling of work is determined by the above two specialists. This clerk determines the start-time and finish-time for completion of work. He compiles the time and cost sheets of the actual time taken and cost implied and thereby controls the job time-wise as well as cost-wise.

(d) Shop Disciplinarian- He enforces discipline on the shop. He deals with cases of absenteeism, insubordination and violation of discipline. He acts as a peacemaker and guardian of orderliness.

ii. Shop Floor:

(a) Gang Boss- He undertakes the setting up of the assembly line for a particular job. He has to see that the workers have enough work, necessary tools and equipments. He guides the workers in the proper arrangement of the job. He has to see that no worker, material or machine remains idle.

(b) Speed Boss- He looks after the function of speeding of the operating machines. While turning out the planned output, he does not accelerate the work-speed unnecessarily but to supervise over proper speeds. He helps workers to attain the designed tempo in the execution of a given job. He has to demonstrate to the workers how to finish the work within the time allowed. Unwarranted acceleration or slackness adversely affects the worker, the machines and the work.

(c) Repair Boss- He is responsible for the proper maintenance and upkeep of the machines, tools and equipments. He takes care that all these are in proper working condition. He is concerned with their safety, cleanliness and workability. This prevents break downs of machines and assures quick and efficient repairs so that the flow of work is not hindered. He has to see that every worker cleans his machine properly and maintains all the standards of care and maintenance of the machines, tools and equipments.

(d) Inspector- He is the quality controller. He has to see that the work performed tallies with the quality or standard laid down for it. He has to verify the quality of the work turned out by each worker and attest about the workmanship. He maintains the standards of quality and rejects that work which does not conform to the given standard of quality. He must have competence enough to carry weight with the workers.

Thus, a worker receives instructions not from one boss but from as many as eight bosses. It is obvious that this type of organisation believes in utilising the services of experts in each type of work. The expert, have line authority over the subordinates and there is multiple subordination. Work is divided according to function and specialist is put in charge of each function. The worker is responsible to all the experts for their respective areas of specialization.


(1) Advantages of Specialization:

The boss has expert and specialised knowledge in his area. The workers receive the benefit of such expertise. As Kimbal and Kimbal have pointed out, function, are performed more efficiently when each manager or foreman, specialised in one phase of work, is responsible for one function rather than a multiplicity of functions. Expert knowledge of a superior becomes readily available to a worker. As each man performs a specific function only, he becomes an expert in that field by repetitive activity. Hence, his efficiency increases.

(2) Expert Knowledge of Specialists:

Planning and execution are bifurcated. Each area is assigned to a specialist. The conceptual exercise involved in planning and dynamic leadership in execution is easily available in this organisation. The main advantage here is the extensive use of the expert knowledge of specialists. The skills and abilities of the workers get perfected as they get the benefit of the expert knowledge of the supervisors.

(3) Higher Standard and Effectiveness of Supervision:

Under this, an executive as well as the supervisor perform a specific function only. He is not overloaded with varied duties. The specialist, therefore, can concentrate on his specialised area and can effectively supervise the work of his subordinates. With special expertise, the standard of supervision is also elevated.

(4) Qualified Supervisory Staff Available:

In the functional organisational structure, various specialists direct the subordinates in specific areas of administration and operations. It becomes imperative to staff the organisation with a sufficient number of qualified executives and supervisors. They are trained further in the shortest possible time.

(5) Mass Production Possible:

The functional organisational structure underlies specialisation and standardisation. It enables the manufacturing concerns to produce on a massive scale and reap the economies of scale.

(6) Expansion without Disturbance:

The system is fairly flexible to accommodate the necessary changes. Expansion of business is not at the cost of efficiency. The functional division does not adversely affect coordination and control.

(7) Scope for Functional Improvement:

The supervisor or the subordinate has to perform a specific function only. With the repetitive function, he becomes consummate in that area. This may allow him to have a thorough job-analysis and scope for its further improvement. Such an initiative has scope throughout the organisation.


(1) Violation of Principle of Unity of Command:

Under this type of organisation, there are several bosses. The worker has to receive orders and instructions from several bosses and he is accountable to all of them. This violates the principle of unity of command and adversely affects discipline among the rank and file.

(2) Overlapping of Authority and Divided Responsibility:

When a worker has to receive orders from several bosses and be accountable to all of them, it leads to overlapping of authority and division of responsibility. In the absence of a clear-cut line of command, such a situation creates more confusion in the minds of the subordinates. With the divided responsibility, there is a tendency to pass the buck. It creates difficulties in locating responsibility for unsatisfactory results.

(3) Obstacles to Efficient Administration:

Under this, there is a multiplicity of specialists. Too many bosses manage the same group of workers. The result is that the administration is rendered complex and unmanageable.

(4) Difficult to Achieve Coordination and Team-Spirit:

This system is too complex to workout since there are divisions and subdivisions of functions. It becomes pretty difficult to coordinate the diverse activities of a number of separate functional departments staffed by specialists of equal level. This remits in poor coordination of the total activities in the organisation.

With each specialist concentrating on his own department and magnifying the importance of his function at the cost of other departments, there is loss of team-spirit. The views of different specialists are at variance and this dampens the enthusiastic spirit of the workforce.

(5) Conflicts:

With a number of specialists ordering the same group frictions and disagreements arise between the workers and the superiors. In addition, there may be areas of disagreement amongst the specialists enjoying the same status. Indiscipline, therefore, may pervade the whole organisation, affecting efficiency and work.

(6) Unsuitable for Non-Manufacturing Concerns:

The system was developed for the manufacturing undertakings and it proved its utility there. But experience has shown that it is not suitable for non-manufacturing activities.

(7) Delay in Decision Making and transmitting them to the Lower Level:

Owing to the overlapping of authority excessive specialisation and too many bosses, the agreement among several bosses becomes difficult, resulting in delayed decision. Besides, when the decisions are finally made, their communication down to the lower levels, in the absence of direct and short line of authority, takes a lot of time. This means, there is a loss of time, money and efforts.


At the top level, the above drawbacks are not so glaring and hence, this type of organisation is in vogue in big concerns for division of work at the top. However, at a lower level or at the shop level, this type has not been found suitable in view of the above-mentioned drawbacks. Moreover, this system is only useful to manufacturing undertakings. Its application to non- manufacturing activities like marketing, purchasing, finance and personnel has not met with success.

The system evolved by Taylor, therefore, is rarely used in its pure form. It is employed in a modified form.

Functional Organizational Structure – Evaluated in Terms of Merits and Demerits

This is similar to the modern view of functional structure of organisations. Marketing, engineering, production and finance are the basic functions of a manufacturing organisation. So, the departments are also named accordingly. It is not uncommon to find research and development, public relations as major departments as per the needs of the organisation.

This reflects logically the main functions of the organisation. It follows the specialisation principle. The focus of training is made very clear. Planning and control are simplified.

It is likely that the departmental managers strive hard in pursuit of the departmental objectives. In such a case, it is likely that they lose sight of the overall corporate objectives. In other words, it calls for a need for careful integration of departmental objectives into the overall objectives of the company. The coordination among different departments may be critical and quite often this determines the success of the organisation.

There is another danger that every department is viewed as a separate entity by itself, leading to water tight compartment culture in the organisation. This can be effectively overcome by ensuring a frequent interaction among the various departments.

The functional organisational structure can be evaluated in terms of the following merits and demerits:


a. Here, each function or process is focused.

b. Specialisation enhances the quality of decisions.

c. It is expensive in terms of time and resources.

d. It offers better control.

e. Training needs can be well identified for career progression.

f. It is more suitable for large and medium organisations.


a. It delays decisions and implementation.

b. It calls for more coordination.

c. It reduces the load on the senior executives.

d. It may not be suitable for small organisations.

e. Here, departmental objectives are more focused than the corporate goals.

Functional Organisational – With Recommendations of Taylor

In the functional organisational structure all activities in the enterprise are grouped together according to certain functions like production, marketing, finance and personnel, and are kept under the charge of different persons. The person incharge of a function follows it wherever it goes throughout the organisation and also controls the individuals working in the functional area.

This means that if a person performs more functions, he will be under the direct charge of several persons i.e. incharge of these functions. The functional incharge is expert in his own field and brings out the best in himself. Many business enterprises follow functional plan to some extent to carry out the primary functions.

This form of organisation structure is mainly of historical important. Functional organisation, often called functional foremanship, was originated by F.W. Taylor, to bring about specialisation of management. It permits a specialist in a given area to enforce his directive with the limited and clearly defined scope of authority. It decreases the problems of line management.

Taylor pointed out that a foreman could not be a specialist in everything he is supposed to do. Instead of having a supervisor as in the line organisation, Taylor arranged for a group of specialists to boss the worker in various aspects of the business. So he advised the substitution of line authority by functional foremanship at the lower levels of the organisation structure.

Taylor recommended that instead of the usual practice of putting one foreman incharge of 10 to 20 workers, there should be the following staff to guide the workers in various functional areas – (i) Route clerk, (ii) Instruction card clerk, (iii) Time and cost clerk, (iv) Shop disciplinarian, (v) Gang boss, (vi) Speed boss, (vii) Repair boss, (viii) inspector. There is functional relationship in the structure because every worker is responsible to speed boss in the matter of his work, to shop disciplinarian in the matter of discipline and so on.

This is the extreme form of functional organisational structure which is not found anywhere because it has been found to be unrealistic and it violates totally the principle of unity of command. In order to maintain unity of command in the organisation, functionalisation is applied at the top of the structure only. Functional organisational structure uses the services of experts in various functional areas. In a functional organisation authority does not flow from top to bottom, as in line organisation are divided according to functions like production, finance, sales etc.

A specialist is placed in charge of each function of a group of related functions. The specialist who may be called a functional manager, has control, has control over the functions in his charge, no matter where those functions are performed throughout the organisation. For instance, the purchase manager is in-charge of the purchasing function, he will control this function where ever it exists in the organisation. This functional authority includes line authority with reference to a specialised function.

In such an organisation consultation with the functional authority becomes necessary for decision making. However, the functional authority is confined to functional advice and/or guidance. The staff working in the various departments continue to be accountable to their respective line supervisors.


i. Expertise of specialised knowledge is efficiently utilised.

ii. Line authority is relieved of taking specialised decisions.

iii. It facilitates work specialisation. It helps in achieving the benefits of specialisation of work. Every functional incharge is an expert in his area and he can help the subordinates in better performance.

iv. It makes for uniformity of decisions.

v. It facilitates better control and supervision in the organisation.

vi. The department executive and his subordinates have to perform a limited number of activities. It ensures his/her efficiency.

vii. If facilitates standardization of operation, methods and equipment.


i. Subordinates get orders from different bosses. The principle of single accountability and unity of command does not apply.

ii. Operating subordinates as well as functional specialists are often overburdened.

iii. It affects the position and status of the line authority in the organisation.

iv. It makes management rigid and inflexible.

v. Co-ordination becomes difficult to actives.

vi. Problems of discipline get complicated at lower levels of the organisation.

vii. There is generally lack of coordination among the functional executives and thus, delay in decision making, specially when it re quires the involvement of more than one specialist.

viii. The operation of functional organisation is too complicated to be easily understood by the workers, workers are supervised by a number of bosses. This creates confusion in the organisation.

Functional Organizational Structure – With Features, Merits and Demerits

An organisation in which line authority, staff authority and a third type of authority known as functional authority, exist together is called a functional organisational structure. It is a limited form of line authority given to functional experts over certain specialized activities, under the normal supervision of managers belonging to other departments.

Managers having functional authority have the right to issue directives on matters over which they do not have direct line authority otherwise.

For example, the Personnel Manager is a staff expert and has advisory staff authority in a line and staff organisation. But in a functional organisational structure, he is given a limited line authority to ensure that personnel policies are observed in all the departments throughout the organisation. This is a case of functional authority given to the personnel manager.


1. More importance is given to staff specialists. In addition to their staff authority, they are entrusted with the authority to decide and do things although in a limited way.

2. It is a more complex type of organisation than line organisation and line and staff organisation.

3. There are three types of authority relationships that exist in these organisations, viz. line authority, staff authority and functional authority.

4. Since, manages and others get instruction from more than are superior, it does not follow the principle of unity of command.


1. Provides Specialization – The work is performed by the specialist, having knowledge of that work. This type of organisation has the benefit of having specialists in each area. The workers have the advantage of getting instructions from specialists. This ensures maximum use of energy in the organisation.

2. Increasing Efficiency – There is a division of labour up to manager level. Planning and execution are also separated. This helps to increase the overall efficiency in the organisation. The workers get guidance from expert supervisors and this boosts their performance at work.

3. Enhances Growth – There is a wide scope for growth and mass production in a functional organisational structure. As per the needs of the situation, specialists are employed at various levels of work.

4. Flexible in Nature – Functional organisational structure allows changes in organisation without disturbing the whole work. The duration of supervision can also be adjusted according to the requirements.

5. Lesser Work-load on Top Executives – Top executives are not unnecessarily burdened like in line organisation. The line officer is supposed to be a jack of all trades and is burdened with all types of works. On the contrary, a specialist is a master of his line and he has the expertise and capability of taking his own decisions.

6. Optimum use of Resources – Using of specialists certainly helps in controlling the wastage of materials, money and time. The consolidation of activities leads to optimum use of facilities like office accommodation, plant and machinery, etc.

7. Provides Effective Supervision – Every superior is an expert of his own area and as he is being well acquainted with the work, so he is able to improve the level of supervision.

8. Democratic Control – This type of organisation eliminates one man control. There is a joint control and supervision in the organisation. This boosts the morale of employees and also gives a sense of cooperation among them. The democratic approach motivates workers to go deep into their work and make suggestions for work improvement.


1. Conflict in Authority – Every superior considers his/her work important and wants the workers to give top priority to his/her assignment. The workers feel confused and are unable to decide about the priorities of their work. The principle of ‘unity of command’ is violated in functional organisational structure. A subordinate is answerable to many bosses.

2. Lack of Coordination – Problem of coordination may create in case, when the advice of more than one is needed for taking decisions. Specialists try to give more importance to their work as compared to other areas. This may create conflicts among Specialists.

3. Problem in Fixing Responsibility – Since, there is no unity of command, it becomes difficult to fix responsibility for slackness in work. So many workers are involved in completing a work and everybody tries to blame others for low performance.

4. Delayed Decisions-making – The involvement of more than one person in decision-making process slows down the process. The speed or action tends to be hampered due to the division of authority. A lot of time is consumed in consulting different specialists prior to decision-making.

5. Lack of Discipline – The division of authority creates problem of discipline. The workers have to obey many bosses, their loyalty becomes divided. Discipline tends to break down not only among workers but also among lower level supervisors.

6. Expensive – The overhead expanses of these organisations are very high due to high packages demanded by the specialists employed in various departments and lines of work. Therefore, small and medium concerns are unable to bear the expensive costs of the personnels.

7. Application of Expert Knowledge – Functional organisation promotes logical division of work and leads to specialization at every work point.

8. Complex Relationships – Functional organisation leads to the cross-relationships between persons and departments. Moreover, as a worker is placed under the charge of a number of bosses, he/she finds it difficult to link up the different orders received from them.

Functional Organizational Structure – Need, Characteristics and Suitability

Under line organisation, a single person is in charge of all the activities of the concerned department. Here, the person in charge finds it difficult to supervise all the activities efficiently. The reason is that the person does not have enough capacity and required training. In order to overcome the limitations of line organisation, F.W. Taylor proposed a new type of organisation called functional organisation.

Under functional organisational structure, various specialists are selected for various functions performed in an organisation. These specialists will attend to the works which are common to different functions of various departments. Workers, under functional organisation, receive instructions from various specialists.

The specialists are working at the supervision level. Thus, workers are accountable not only to one specialist but also to the specialist from whom instructions are received. Taylor advocated this organisation as a point of the scheme of scientific management. Directions of work should be decided by functions and not by mere authority.

The need for functional organisational structure arises out of:

i. The complexity of modern and large-scale organisation;

ii. A desire to use the specialisation in full and;

iii. To avoid, the work-load of line managers with complex problems and decision-­making.

Characteristics of Functional Organisational Structure:

i. The work is divided according to specified functions.

ii. Authority is given to a specialist to give orders and instructions in relation to specific function.

iii. Functional authority has right and power to give command throughout the line with reference to his specified area.

iv. The decision is taken only after making consultations with the functional authority relating to his specialised area.

v. The executives and supervisors discharge the responsibilities of functional authority.

F.W. Taylor, the father of scientific management, recommended a functional organisational structure of activities at the top level. According to Taylor, a foreman should not be burdened with looking after all the activities of his work. Instead, he should be assisted by a number of specialists in solving the problems.

i. Route clerk – He is a technical expert. He fixes the route through which each work should travel up to the stage of completion.

ii. Instruction card clerk – He is expected to draft instructions to workers on the basis of the route fixed by the route clerk. These instructions are written on a separate card.

iii. Time and cost clerk – This clerk fixes the standard time for each work and the cost incurred for each work. He gives instructions to the workers to record the time actually spent by the workers and actual cost incurred for completion with standard time and cost.

iv. Gang boss – This worker is expected to see the various machines and materials kept ready for workers to perform the work.

v. Speed Boss – He advises the worker to complete the work within the standard time considering the speed of the machines. Besides, the speed boss sees whether each work is completed in time or not.

vi. Inspector – The Inspector checks up the quality of each works and certifies it as standard. Actually, the accuracy of work is checked with reference to the specification.

vii. Repair boss – His work starts only after the actual work is performed by the workers. He is concerned with the up-keep of machines and other equipments. It means that the responsibility of the repair boss is the maintenance of machines.

viii. Disciplinarian – He implements the rules and regulations of the entire organisation. He is a peacemaker of the organisation. He also checks whether each work is performed in a systematic and perfect manner.

The route clerk, the instructions clerk and time and cost clerk work in the planning department. The gang boss, speed boss, inspector, and repair boss belong in the factory section of the organisation. The disciplinarian is not a staff of any section but he is responsible for the workers’ conduct.

Suitability of Functional Organisational Structure:

It is very suitable to a business unit which is engaged in manufacturing activities.