Examples of companies that use functional structure

What does company structure mean? Airtel is a leading telecommunication company in India. Airtel has a functional structure which is one of the best organizational structure examples. All of them report directly to the head.

ACROSS THE BUSINESS Most companies have a well-defined strategy that is intended to align the actions of all individuals, teams, and business units to achieve corporate goals.

But when it comes time to execute, they can run into trouble - especially during times of significant business change. The traditional line structure is organized in such a way that a. Project-based structure. Highly dynamic and creative companies – such as software developers, architecturefirms,. The functional organizational structure organizes the activities of a business around areas of specialization.

They are grouped based on their specific skills and knowledge. A functional organizational structure is a structure used to organize workers.

It vertically structures each department with roles from president to finance and sales departments , to customer service, to employees assigned to one product or service. Examples of Functional Organizational Structure. Finding a real-world example of a well-known functional organization is difficult. A small organization dealing with production can be similar to a functional structure. However, as they grow, they will need elements of a projectized structure.

Finance Team (D) HR Team (D) This hybrid organizational structure example tries to combine a functional organizational structure with a matrix-based one. In this instance, the business is also project-base but the team follows a functional structure. For example : Research-based projects to launch a new.

The functional hierarchy feature of Starbucks Coffee’s organizational structure refers to grouping based on business function. A real-life example of the divisional structure is PepsiCo’s structure. Instead of focusing on specialties, this structure groups individuals based on the products or projects they are undertaking. General Electric is an excellent example of how this style can work.

Some examples would include organizations that have individually functioning units such as human resources, sales and marketing, creative departments, accounts and finance, advertising, etc. Bear in min however, that many companies tend to use hybrid models that combine the characteristics of different organisational structures. Functional organisational structure The oldest and most widespread form of organisational structure divides a company into general, strictly differentiated job functions.

The following are illustrative examples of a cross- functional team. Businesses with functional or divisional structures tend to use straightforward modeling. Out of the four organizational structures , functional and divisional structures are the easiest to build financial and forecasting models on, because of the simplicity of the companies ’ departmental structure. Another disadvantage of functional organization structure is that these functional groups may not be able to communicate more often which decreases flexibility and innovation. When a company uses this type of structure , it groups its people according to their knowledge and skills which help them become specialists on that field.

Functional structure at FedEx: 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.). Most businesses that use this structure have departments dedicated to a single function. Some common examples are the accounting,.

A software company has a functional structure of individual contributors reporting to team managers with the occasional special assignment that involves a dotted reporting line. The managers now had to report to both the product division and geographical managers.