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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