functional

(noun)

In this context, skills that relate to a specific field. 

Related Terms

  • hierarchy of authority
  • common law
  • organization
  • decentralized

(adjective)

A structure that consists of activities such as coordination, supervision, and task allocation.

Related Terms

  • hierarchy of authority
  • common law
  • organization
  • decentralized

Examples of functional in the following topics:

  • Functional Structure

    • An organization with a functional structure is divided based on functional areas, such as IT, finance, or marketing.
    • Functional departments arguably permit greater operational efficiency because employees with shared skills and knowledge are grouped together by functions performed.
    • Functional structures may also be susceptible to tunnel vision, with each function perceiving the organization only from within the frame of its own operation.
    • This organizational chart shows a broad functional structure at FedEx.
    • Each different functions (e.g., HR, finance, marketing) is managed from the top down via functional heads (the CFO, the CIO, various VPs, etc.).
  • Functional vs. General Management

    • General managers focus on the entire business, while functional managers specialize in a particular unit or department.
    • Functional management and general management represent two differing responsibility sets with an organization.
    • Functional managers are most common in larger organizations with many moving parts, where different business functions are led by managers within those respective fields (i.e. marketing, finance, etc.).
    • Each functional manager is in control of a particular area of expertise—e.g., operations or policy and planning—and the general manager supervises all the functional managers.
    • Differentiate between functional management and general management from a business perspective
  • Cross-Functional Teams

    • A cross-functional team comprises people from different departments and with special areas of expertise working to achieve a common goal.
    • Many business activities require cross-functional collaboration to achieve successful outcomes.
    • In this example, the team brings together people from five different functional areas.
    • This can make communication between members of a cross-functional team difficult and subject to misunderstanding.
    • Perceived differences in relative importance or credibility can undermine the effectiveness of cross-functional collaboration.
  • The Role of Management in an Organization

    • Organizational design is largely a function based on systems thinking.
    • These functions enable management to create strategies and compile resources to lead operations and monitor outputs.
    • All levels of management perform these functions.
    • Middle-management will generally focus on operations within functional or geographic areas.
    • Lower-level managers will look at specific processes within functions or regions.
  • Matrix Structure

    • Common organizational perspectives include function and product, function and region, or region and product.
    • In an organization grouped by function and product, for example, each product line will have management that corresponds to each function.
    • In a matrix structure, the organization is grouped by both product and function.
    • Product lines are managed horizontally and functions are managed vertically.
    • This means that each function—e.g., research, production, sales, and finance—has separate internal divisions for each product.
  • Types of Teams

    • Depending on its needs and goals, a company can use a project team, a virtual team, or a cross-functional team.
    • Common types of teams found in organizations include project teams, virtual teams, and cross-functional teams.
    • Members of a project team often belong to different functional groups and are chosen to participate in the team based on specific skills they can contribute to the project.
    • Cross-functional teams combine people from different areas, such as marketing and engineering, to solve a problem or achieve a goal.
  • Basic Types of Organizations

    • Weak/Functional Matrix: A project manager with limited authority is assigned to oversee cross-functional aspects of the project.
    • Functional managers maintain control over their resources and project areas.
    • Balanced/Functional Matrix: A project manager is assigned to oversee the project.
    • Power is shared equally between the project manager and functional managers, combining the best aspects of functional and project-oriented organizations.
    • Functional managers provide technical expertise and assign resources as needed.
  • Increasing Coordination

    • It is a managerial function in which different activities of the business are properly adjusted and interlinked.
    • Employees within the functional divisions of an organization tend to perform a specialized set of tasks, such as engineering.
    • There are a number of ways to improve upon the coordination of different departments, work groups, teams, or functional specialists.
    • At a high level are multiple functional groups, or "modules"—technical, marketing, and intellectual property.
    • The linked working groups (e.g., data coding workgroup, security workgroup, and audio and video compression workgroup) within the technical functional group likely have coordinated functions.
  • Frontline Management

    • Frontline management balances functional expertise with strong interpersonal skills to optimize specific operational processes.
    • At the front line, managers are often highly skilled and even functional specialists.
    • Core skill sets for frontline managers can change depending on what function they are overseeing.
    • If we are talking about an accounting manager, they must be able to balance the books and understand enough of everyone's specific function to fill the gaps.
    • This is a particularly good example of hierarchical thinking, as militarizes often function with a high degree of hierarchical authority.
  • The Role of Teams in Organizations

    • In organizations, teams can be constructed both vertically (varying levels of management) and horizontally (across functional disciplines).
    • The underlying assumption of a well-functioning team is one of synergy, which is to say that the output of a team will be greater than the sum of each individuals contribution without a team architecture in place.
    • Some organizations have a need for strong cross-functional teams, which enable various functional competencies to align on shared objectives.
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