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functional decomposition
functional depreciation
Definition
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A method for separating the activities performed within an organization into groups
differentiated by the function they perform. For example, a businessemploying
functional departmentalization would tend to group together workers that perform a
particular function, such as accounting, that differs substantially from the tasks
performed by other staff members.
Read more: http://www.businessdictionary.com/definition/functional-departmentalization.html#ixzz2OZpRaWro
Departmentation:
1. People may care more about their own function than about the company as whole, and their attention to functional
tasks may make them lose focus on overall product quality and customer satisfaction.
2. Managers develop functional expertise but do not acquire knowledge of the other areas of the business; they
become specialists, but do not generalists. Between function, conflicts and communication and coordination fall off.
3. In this fragmented environment, it becomes difficult to develop and bring new products to market, and difficult to
respond quickly to customer demands and other changes.
4. Particularly when companies are growing and business environments changing, the need arises to integrate work
areas more effectively so that the organization can be more flexible and responsive. Other forms of
departmentalization can be more flexible and responsive than the functional structure.
5. Responsibility for profits tends to be at the top.