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Functional Areas

Functional areas are teams of employees with similar skills, such as a sales department focused on selling products. Companies organize by functional areas to enhance efficiency, facilitate teamwork on projects, and allow managers to oversee and guide work effectively. This structure also promotes easier training and knowledge sharing among employees with related expertise.

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4 views

Functional Areas

Functional areas are teams of employees with similar skills, such as a sales department focused on selling products. Companies organize by functional areas to enhance efficiency, facilitate teamwork on projects, and allow managers to oversee and guide work effectively. This structure also promotes easier training and knowledge sharing among employees with related expertise.

Uploaded by

shivkumardas965
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What Are Functional

Areas?
Functional areas are teams of employees who
have similar skills and expertise. For example, a
company's sales department is a common
functional area, and the staff in this area would all
be focused on selling the company's products.

Why Would a Company


Organize by Functional
Area?
Companies organize by functional areas for many
reasons. First, it's more efficient to have staff with
similar skills grouped together. They can easily
team up on projects requiring their expertise and
will have backup expertise if one staffer is unable
to complete their work. For example, a company
is going to set up a new server in their data center
and they'll likely need several different staffers
from the information technology department
involved in the project. Since all work in the same
functional area, it is possible for a single manager
to assign them all to the project and to make sure
the project is completed on time.
Organizing by functional area also allows a
manager with similar skills and expertise to review
the work done by the members of the function. To
use the new server example from above, the IT
manager who is in charge of the project will have
significant knowledge of the skills being used on
the project and can offer assistance and guidance
when needed.
Finally, this organizational scheme makes training
and knowledge sharing easier, since employees
working on similar functions work together and
can share their expertise.

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