Table of contents
Table of contents
In Lexington, after 40 years as flex spaces operators, we know that each company is unique. Every day we encounter new business, all different from one another, with their own needs and internal organization. You know what they say… There is indeed more than one way to skin a cat! Today we wanted to go over one of the corporate structures you could find in a company. This one is the most traditional, logic and basic one: the functional structure. But, what is the functional structure of a company?
The functional structure of a company was born out of the necessity of having true professionals on every field and hierarchical level. Under this organizational structure, employees are gathered together into groups based on their speciality. This means each team responds to a supervisor 100% committed to one department in particular such as graphic design, marketing, web development, production or sales. Companies with this structure are able to make the most of their specialised resources, always putting efficiency first. Because of that, the functional structure is a perfect fit for both companies with a smaller, low-cost mass-produced product portfolio, and also multinational companies.
A functional structure allows a company to make the best of their specialised resources to output low-cost mass-produced products or services.
Interesting, isn’t it? 😉 If you want to know more about the functional structure of a business, stay here because you’ll find a pros and cons list of this corporate structure and some examples to picture it better. Once you’ve read everything, you’ll see the light! If this functional structure is the best match for your company, you will know.
The functional structure of a company has established itself as an efficient organizational model that offers various advantages, but it also presents challenges that must be addressed to ensure its long-term success. Among the numerous advantages of this hierarchical work structure, we would like to highlight the following:
On the other hand, not everything is always rosy, as the simplicity of this structure can affect different levels. We wanted to highlight these disadvantages of the functional structure of a company:
As inevitable as conflicts in the workplace may seem, these strategies combine to create a work environment where competition and rivalry can be transformed into collaboration and synergy, maximizing the effectiveness and cohesion of the team in a functional structure:
And if you're a leader and want to learn how to motivate your employees for even better work relationships, don't miss this Ted Talk.
Companies like Apple, Walt Disney’s theme parks or the overseas CNN and Wal-Mart, of whom we are sure you have heard, chose this functional structure.
As we’ve said, a clear example of this would be the company Apple. Since their early stages, this company has gone for a start-up-like internal structure, something that allowed them to address topics such as marketing or design with a cross-cutting approach for all their products and services. This way they can avoid departments fighting against one another for resources or attention.
According to this Applesfera article: “there is no single person in charge of Mac, IPhone or IPad. (…) The whole team works for the whole company.”
Even though there may be some issues related to this model, some companies and moments in time are screaming out for this easy and traditional organizational structure.
If your company has a professional team whose members understand one another, with the same goals and a strong feeling of belonging, half the job is done! You’ll also need a strong leader to guide these experts, right? If you can check both charts, congrats! This structure may be like tailor-made for your business.
Oh, and of course, you shall not worry if not! Now that you know what a functional structure of a company is, if you are not 100% on board with the idea of implementing it on your company, here you have a basic guide on organizational structures for a company. You choose!
The functional structure is ideal for well-united teams and strong capable leaders, both with a clear feeling of belonging and common goals.
Besides, with the new concepts of hybrid office and flex spaces as Lexington’s, you’ll find the perfect work environment to face any inconvenience that may come your way. If this corporate structure lacks flexibility, take it from somewhere else! Get in touch now to know more about our flex spaces in Madrid and Barcelona.
“The achievements of an organization are the results of the combined effort of each individual.”
Vince Lombardi
Written by
COO and Digital Manager in Lexington. In other words, a manager of managers! Our team player Ester, a trained mathematician with the most exceptional analytical mind, knows every detail about our workspaces, our internal processes and our team. She excels herself every day! Ester is the Chief Officer of so many Operations that her name is on everyone’s lips!
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