A key element in organization (and work units within an organization) success is its structure – how its work activities are organized; and how responsibility and authority are identified. Structure affects how employees – even at the very top of the organization – execute their responsibilities and authority, coordinate and work with others and achieve organization goals and objectives. Poorly designed structures, including those that do not change as the organization’s work evolves, will negatively affect its operational and financial viability. The type of structure that works best for one type of organization will not necessarily work for another.
The functional structure allows for a high degree of specialization for employees, and is easily scalable should the organization grow.