Functional Organisational Structure
When the activities or jobs are grouped keeping in mind the functions or the job then it is called functional structure. For examples, all the jobs related to production department, related to sales in sales department, related to purchases in purchase department and so on. Within the departments also grouping is done on the basis of specialized functions. For example, the production department can be further classified into store department, quality control department, assembly department, etc. within each department and sub-department a chain of superior and subordinates is created to work systematically. So many advantages like:
Specialization: when the activities are grouped according to the type of function then all the activities are related to one type only. So, the specialized and professional experts can be hired to supervise those activities. This leads to efficiency and specialization.
Easy supervision: the supervisor becomes familiar with the type of task to be performed because all tasks are related to one function only. As a result he can supervise and guide the employees who are performing those activates.