F.W.Taylor, the father of scientific management, has initiated the concept of functional organization under the scheme of functional foremanship.Present functional organization is very much based on the philosophy of functional foremanship scheme.however , in practical, functional organization concept is limited only to the top level management and not in practical at subodinate level.
In functional organization, all the business activity of an enterprise are divided into a number of function and each function is entrusted to a specialist.Each specialist, to whom a function is entrusted , is known as functional specialistand authority delegated to each specialist is known as functional authority.For instance, the business activity of an enterprise might be divide into various functions like-production, perssonnel, marketing, finance, research and development,purchasing etc.
Generally, in functional organization the functional specialist communicates with each other through general manager .Here no functional specialist can providedirect instruction or suggestion to another functional specialist.
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