HRM Department in Functional Organisation

All activates of an organisation are divided into various functions in any functional organisation, such as marketing, production finance etc. Each of the functional area is headed by a specialist who directs the activities of that area for the complete organisation. Therefore every employee is needed to report to various functional heads. The functional head contain line authority over subordinates in own functional area. In addition, he has functional authority upon activities in other functional areas. The term 'functional authority' therefore is a limited from of line authority given to functional experts in an area where sure specialised activities are carried out under the usual supervision of managers that  belonging to other departments.

Functional organisation has the vast advantage of clarity. Everybody has a home.  It gives economy of scale within functions. It drops duplication and waste. Functional heads may specialise and focus energies on a narrow area as they achieve experience, expertise and competence on a period of time. However the 'effort focus' puts managers in a race. They tend to fight for authority, resources and benefits. Everyone attempt to glorify his own field at the cost of others. Overlapping of power and divided responsibility further make complicates the scenario.