The functional organization structure is one which there are a number of functional specialists supervising the activities of a single subordinates. This organization type reflects a kind of specialization in which authority is vested in managers according to their field of expertise. Specialization provides certain benefits that are required in certain situations like when specialized products or services are required. A motor car service shop with specialists, for instance, will attract certain types of customers. The disadvantage of functional organization is that sometimes departmental concerns tend to override more important organizational concerns.

RGC



