Funtional Management


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This presntation is about organizing a company around functions, as opposed to individuals.

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Funtional Management

  1. 1. Functional Management Tommy Mack Organization Tommy “Mack” McEldowney ©2009 Tommy Mack Organization. All rights reserved
  2. 2. PURPOSE <ul><li>Organize the company around the functions that are required. </li></ul><ul><li>Provide the products and services for which the company is in business </li></ul><ul><li>Market those products and services </li></ul><ul><li>Avoid designing the organizational structure around individuals who may inhabit particular positions in the company. </li></ul>©2009 Tommy Mack Organization. All rights reserved
  3. 3. PRINCIPLES INVOLVED <ul><li>Define positions within the company according to needs, size and goals of the organization. </li></ul><ul><li>Define distribution of responsibility and authority in order to provide each position with a balance of responsibility and authority. </li></ul><ul><li>Define positions, duties and individual tasks by its place in the company. </li></ul>©2009 Tommy Mack Organization. All rights reserved
  4. 4. FUNCTIONAL DEVELOPMENT <ul><li>A Functional Chart is prepared as the first step in arranging and streamlining a business. It describes the functions being done in the company. </li></ul><ul><li>The functions are described without regard to the current person or manner of accomplishing the function. This is done to clarify what needs to be done. </li></ul><ul><li>The functions are then grouped into positions in which these functions are normally accomplished. </li></ul>©2009 Tommy Mack Organization. All rights reserved
  5. 5. POSITION DEVELOPMENT <ul><li>A Positional Organization Chart is then developed grouping functions within the available personnel and current management objectives. </li></ul><ul><li>Organizational changes are made to give authority and responsibility to positions developed on the Positional Organization Chart. </li></ul><ul><li>Position Guides are developed to clarify and identify the authority, responsibility and duties of the position. </li></ul>©2009 Tommy Mack Organization. All rights reserved
  6. 6. EXPLANATIONS (more) <ul><li>The Functional Chart lists “normal” titles and functions usually accomplished by that title. </li></ul><ul><li>The Positional Organization Chart is made up of a series of boxes connected by lines. </li></ul><ul><li>The boxes start at the top of the page and a box or a group of boxes are placed in several levels below, representing relative levels of authority and responsibility. </li></ul><ul><li>Authority is the assigned ability to act on behalf of the company. </li></ul><ul><li>Responsibility is the expectation the company has defined for each position and results expected from a duty or task. </li></ul>©2009 Tommy Mack Organization. All rights reserved
  7. 7. EXPLANATIONS (continued) <ul><li>The boxes represent positions and titles within the company, not individuals. </li></ul><ul><li>The chart depicts communication of directions and instructions flow from top of the chart down. </li></ul><ul><li>Reporting communications flow in the chart is from the bottom up. </li></ul><ul><li>The organization chart is modified as decisions are made to change responsibilities and reporting relationships. </li></ul>©2009 Tommy Mack Organization. All rights reserved
  8. 8. MANAGEMENT ADVANTAGES <ul><li>Provides a means to determine that the company is organized in a reliable and workable way, defining duties and job descriptions. </li></ul><ul><li>Provides a structure to clarify decisions made concerning authority, responsibility, and reporting relationships and a means to modify these decisions. </li></ul><ul><li>Communicates staff reporting relationships, authority of positions, and eliminates confusion about who can give instructions or provide discipline. </li></ul>©2009 Tommy Mack Organization. All rights reserved
  9. 9. STAFF ADVANTAGES <ul><li>Provides clear understanding of who is their supervisor. </li></ul><ul><li>Gives a clear picture of duties and authority of other parts of the company. </li></ul><ul><li>Gives clear understanding of the career path for future advancement. </li></ul><ul><li>Provides structure for performance evaluations, organizational changes, improvement methods and future growth decisions. </li></ul>©2009 Tommy Mack Organization. All rights reserved Tommy “Mack” McEldowney Director Tommy Mack Organization