functional
(noun)
In this context, skills that relate to a specific field.
(adjective)
A structure that consists of activities such as coordination, supervision, and task allocation.
Examples of functional in the following topics:
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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.).
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.