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Functional departments. Functional Departments. An organisation chart is arranged into functional departments, such as Marketing and Administration. Each department has a particular job or function. They use specialist skills in their work.
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Functional Departments • An organisation chart is arranged into functional departments, such as Marketing and Administration. • Each department has a particular job or function. They use specialist skills in their work. • Regional Division are departments responsible for business in other countries.
Line Managers and staff managers • Line managers: have direct control over the subordinates in their department. They are able to take decisions in their departmental area. • Staff Managers: are specialist advisors who provide support to the line managers and to Board of Directors. These managers tend to be very well qualified experts.
Advantages and disadvantages of employing Staff and line managers • Staff managers can provide advice to line managers on particular issues, like, impact of economic changes on the organisation. • This gives more time to Line managers to concentrate on their main tasks- organizing their department and taking decisions. • There may be conflict and frustration between the two groups because they may have different points of view on important matters. • Line managers may be confused about who to take orders or instructions from – the line or the staff manager.
Decentralization • A Decentralized management structure means that many decisions are not taken at the center of the business but are delegated to a lower level of management. • A Centralized management structure means that most decisions are taken at the center, or higher levels of management.
Different forms of decentralization • Functional Decentralization: when specialist departments are delegated decision-making. • Federal Decentralization: when authority is divided between different product lines of the business. • Regional Decentralization: when a business, such as a multinational, has bases in many different regions or countries. Each has authority over its own operation. • Decentralization by project teams: when a particular product, for example the design of a new aircraft, is given to a team involving people from all functional areas.
