Page 4 - Lesson Note 2

responsible for coordinating a particular number of jobs, which is called

the span of control.
Delegation of Authority: As jobs have been assigned, some degree of

authority is required to get the job completed.

Types of Organization Structure

On the basis of nature of activities performed, the organization structure

is classified into two:
• Functional Structure

• Divisional Structure

Functional Structure

As the name suggests, in a functional structure grouping is based on
functions. This means that similar jobs are integrated into functions and
major functions are further categorized as departments which are

handled by respective coordinating heads. These departments can
further consist of sections. Note that functional structure is a basic and

simple organizational structure.

Advantages

• Since functional structure revolves around functions, the division is
such that an employee performs a specific set of tasks as a part of his
routine. Effectively, this creates room for job specialization and efficient

use of manpower.
• Again, as similar tasks are grouped together into a function and

emphasis is laid on specific functions, this structure facilitates
coordination and control.

• In a functional structure, we keep similar tasks together and different
tasks away. This implies that there is no scope for duplication. Effectively,

this lowers cost.