logo share us

Functional Organization


Definition: a Functional Organization is a type of organization in which functional departments such as Finance, Marketing and Human Resources are created to deal with such business problems at various levels. The FO uses the principle of specialization based on function or role.
It allows decentralization of decisions, since issues are delegated to specialized persons or units, which are given the responsibility of managing, implementing, evaluating, or controlling their responsibility area.
Other forms of organizations are: hierarchical organization, matrix organization, network organization.
An FO is also called departmental organization.


Learn more about Functional Organizations

More on organization types: Contingency Theory, Hierarchical Organization, Non-governmental Organization, Nonprofit Organization, Organization, more...

You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA.

MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.

add us to your desktop

Add MBA Brief to your desktop / iPad


© 2023 MBA Brief - Last updated: 26-9-2023  -  Privacy   |   Terms