The concept of functional management

[subornaakter40]

The linear management structure is simple: the links between levels are built strictly vertically, and one-man management is the fundamental principle. This system is especially effective for small businesses, including family businesses, due to its clarity, precise interactions and minimal number of management levels.

However, a senior line manager is forced to buy bitcoin email list independently resolve all management issues, which in large enterprises can lead to his overload, lack of time for strategic tasks and a decrease in the quality of decisions.

The concept of functional management

Source: shutterstock.com

When a functional structure is implemented at the middle management level, specialized units are created that perform specific actions. These units support lower-level line managers, i.e. junior managers.

In the West, functional levels include departments such as human resources, marketing, finance, and logistics. Each of these levels has the right to manage the lower levels.

As a result, the top-level line and functional manager is freed from some operational functions and can focus on strategic management. This allows for more competent decisions to be made, as they are transferred to the responsibility of narrow-profile specialists. The main disadvantage of the functional structure is possible conflicts in orders and the presence of dual subordination of employees.

The functional structure represents the distribution of management functions between managers and individual departments.

A management function is a type of activity that results from the division and specialization of labor in the management sphere. It is distinguished by its characteristics and is part of the overall management process. A company may have from 10 to 25 management functions.

A task complex is a part of a management function that is identified according to certain criteria, such as planning, standardization, analysis, and accounting. The implementation of such tasks is usually assigned to small functional units.

A functional manager is someone who organizes the activities of employees performing tasks within his or her competence.

In some cases, the executive manager also acts as a functional manager. For example, the chief accountant can be both the administrative manager of the accounting department and the functional manager, responsible for organizing the work. Similarly, the head of the sales department manages both the sales managers and their work processes.

However, there are situations when an employee has different administrative and functional managers. For example, in a chain of stores, the cashier's administrative manager may be the store manager, while the functional manager is the chief accountant, who is competent in matters of working with the cash register and maintaining financial documentation.