Functional departmentalization

Definition

Functional departmentalization is an organizational structure method where a company is divided into departments based on their functions such as marketing, finance, human resources, and operations. This approach allows for specialized divisions to focus on specific tasks, promoting efficiency and expertise in each area.

Related terms

Organizational Structure:

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including rules, roles, and responsibilities.

Division of Labor:

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

Specialization:

A process in which individuals or departments focus on performing a single or limited number of tasks, allowing for increased efficiency and skill proficiency within those areas