A functional organization has a mix of line and staff roles, where multiple specialized managers have authority over lower-level employees. This type of structure is common in larger companies with different products or markets. It benefits from skilled middle managers who ensure their plans are followed. However, since the sales team gets orders from various managers, it can sometimes cause confusion about which instructions to follow.
A functional organisation is a line and staff organisation, but more than one
specialised manager has line authority over the lower-ranked employees. A
functional organisation is mainly used by larger organisations with varied product
lines or markets. The functional organisation is characterised by the benefits of
specialised middle management with line authority to ensure that their plans are
carried out. However, because the sales team receives orders from various middle
managers, this may lead to confusion as to which specialised function takes
precedence.
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