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Organizational charts show roles and names of employees in a company. A functional chart organizes positions by purpose, making it easy for employees to understand their roles. However, it can create division between departments.
An organizational chart shows in a graphical format the roles of each position in the company and the name of the employee who fills the role. Organizational charts can be assembled in various formats. One such format is by function, which organizes positions within the company based on the purpose of the job or position.
The hierarchy of the company is defined within the organization chart. Each hierarchical level represents a piece of the puzzle or organizational structure that the company needs to operate effectively and efficiently. By establishing the levels of the company in a functional organizational chart, it allows the creator of the organizational chart to assign precise and clear roles to each department of the company and to each individual who works in each department. It allows the functional org chart viewer to easily see the positions in the business and what specific purpose or function each area fulfills.
It may seem that a functional organization chart is divided into departments, such as marketing, human resources, operations, sales, research and development. This is exactly how these types of organizational structures work. Dedicate one aspect of the business to an entire department, so that the marketing department and the roles within the marketing department all work towards the common goal of promoting and marketing the company.
The advantage of organizing a functional organization chart is that it makes it simple for all employees who work for the company to understand. This type of structure also focuses the objective or purpose of the function, role or department to be clear and precise to those working in and outside the department.
In other words, employees working in the marketing department know and understand their role in the company. Within the functional organization chart, there may also be sub-categories or sub-specialties that fall under the function. Using the marketing department, one employee can focus on print marketing, while another focuses on social media marketing. Individual employees in the marketing department can even focus on a specific product or product line.
The main downside with a functional organization chart is that it can create dividing lines between departments and employees. Rather than having everyone work towards the common goal of making the company successful, the “it’s not my job” mentality can creep into employees’ minds. In turn, this can cause conflict between departments.
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