• Home
• About Us
  • Our History
  • Management Team
    
• Services
  • Profit/Expense Control
    
  • Organizational Review
    
  • Business Strategy
    
  • Incentive Plans
    
  • Coaching
    
• Free Business Analysis
  • Scope of Work
    
  • 10 Reasons
    
  • why?
    
• Productivity Plan®

Subscribe

Recent Posts

• Increasing Productivity
• Making Strategy a Reality
• Quantifiable Performance
  
• Bleeding Projects
  
• Hiring Overhead Staff
  
• Estimate Tools
  
• Incentive Plans
• Growth Strategy
  

Seminars

• St Could, MN
  
• Chesapeake, VA
  
• Coeur D'Alene, ID
  
• Raleigh, NC
  
• Virginia Beach, VA
  
• Boise, ID
  
• Valdosta, GA
  
• Norfolk, VA
  
• Elizabeth City, NC
  
• Columbus, SC
  
• Albany, NY
  

Productivity Plan

• Productivity Plan Site
• Job Status Reports
  

Follow us

• RSS feed

Access

Organizational Reviews

Do you have a functional or a non-functional organization?

Non-functional management is built on the knowledge, abilities, and interests of one or a few individuals. Positions are molded to fit people, rather than training people to fill positions, and lines of authority tend to be governed by penalties. There will normally be a definite lack of consistency in management.

The non-functional organization is run on personality. Those individuals with the strongest personalities are the ones who assume the most power, frequently resulting in conflicts. In a non-functional organization, there are not clear, written rules stating what authority the various functions have. In addition, it is rare for these people to be held accountable for their actions.

Positional responsibilities will be fluid and tend to vary form time to time. In addition, there will often be shared or overlapping authority. It will be virtually impossible to exercise control through delegation and accountability. In fact, there is almost never any really effective delegation of authority, responsibility, and accountability in non-functional companies. There is no control, and when there is no control, profitability suffers. The inconsistencies of a non-functional structure will normally cause a loss of morale and motivation, along with a decrease in productivity and profitability.

Another characteristic of non-functional organizations is the lack of depth when it comes to staffing. There are usually no provisions made for the absence of key personnel. Vacations are difficult, at best. Temporary incapacity of a key individual is a disaster, in most cases. Retirement is impossible, or will cause major disruptions in the organization. There can be no succession planning, since all of the authorities, duties, and responsibilities are associated with the person, not the position. And any decline or withdrawal of ownership involvement can have serious consequences for the company's effectiveness and profitability.

Functional management is the most effective form of organization and therefore management--because it is designed around functions, rather than people. Individuals are tailored and trained to fit the position, instead of changing the nature of the position to fit the individual. Each function has its own responsibilities, separate and distinct from every other function. The functions never overlap and the scope never changes to fit an individual. Individuals are chosen to fill functions based on their ability, knowledge, training, and experience.

Functional management builds team spirit because each function operates within its own limits and each must communicate, cooperate, and coordinate with all of the other functions. This is particularly important in a business where the owner(s) is trying to reduce the actual time he spends in day-to-day operations of the business.

All of the functions, taken together, form the organizational team. Like any team, the organizational team is measured in terms of the quantity and quality of its teamwork. The teamwork will, in turn, affect the quality and quantity of each individual's personal performance. This concept of teamwork is critical to the idea of a functional organization, and is one of the major differences from a non-functional organization.

In order for this new organization to operate effectively, everyone must be functioning within his or her areas of responsibility and all must be working towards the same goals. Individuals, at all levels, with the authority to make decisions will ensure that the total effort is efficient, effective, and profitable.

In functional companies, authority can be delegated, along with accountability; however, ultimate responsibility can not be delegated. Each task is performed in its proper work area and is grouped with related tasks into jobs or positions. Related jobs and positions are grouped together into departments or sub-functions, which in turn are grouped together into major operating functions.

Individuals are then selected to fill positions, at all levels, based upon their ability, knowledge, skills, and experience. Individuals are selected to fill function head and major sub-function head positions based upon their qualifications and their ability to coordinate the activities within their areas of operation.

The Job Descriptions for each functional or sub-functional position will list all of the authorities, responsibilities, and duties for each position. Therefore, both the Functional Organizational Chart and the Job Descriptions are used to hold the positions, and the individuals who fill those positions, accountable for the operations of that function.

Drake Baron Management Consultants has helped restructure several contractors around their functional needs and can objectively help your company.

Contact Us

---

Recent News