In order to perform the tasks concerning of these major parts, there are different segments called the functional areas. They are grouped based on their specific skills and knowledge. Functional leadership theory (Hackman & Walton, 1986; McGrath, 1962) is a theory for addressing specific leader behaviours expected to contribute to organizational or unit effectiveness. Features of Functional Organization Strategic Management Model with examples. Usually, the … The following sections describe the five functional areas in the FCAPS model. It vertically structures each department with roles from the president to finance and sales departments, to customer service, to employees assigned to one product or service. This offers several benefits, since it divides a big system into smaller systems that are more specialized and easier to manage (as they are less complex). The business have a wide and dynamic area. Fault management is a life cycle centered that revolves around identifying problems through continuous monitoring of the entire network, correlating the fault data, and isolating the problem to the source. All of them report directly to the head. Functional departments are sometimes referred to as “silos.” This means the system is vertical and disconnected, communication flows through the department heads to the top management. Such as Balanced Scorecard, Strategy Map, SWOT Analysis, PEST Model, Gap Planning, Red-Blue Ocean Strategy, Porter’s Five Forces Model, Thompson and Strickland's Model, VRIO Framework, Andrew's Model, Glueck's Model, The Schendel and Hofer Model, Korey's Model, Schematic Model. Here, all authority stays with the functional manager. Under this model, leadership is a distributed function. It defines the types of behaviors that guide an organization and then looks at how those behaviors occur. The Two Managers • The Old Manager o Distrusts the team o Enforces decisions o Commands respect o Controls the process, the team, the deliverable, and the effort o Dictator, Ruler, Controller • The New Manager o Trusts the team o Relies on the team to decide o Earns respect o Has a team that creates and uses their process, that commits to their A functional organizational structure is a structure used to organize workers. In the case of a functional approach, a company is actually hierarchically divided into ‘sub-companies’, each performing a specific function (e.g., sales and production). Functional leadership is model that concentrates on how leadership occurs, rather than focusing on who does the leading. Functional Areas of Management – 15 Major Functional Areas of Management . These are the network management categories used by the ISO. When the company grows, it will start adding further heads and top management officers, but at the beginning, it is a perfect set-up for functional organizational structure. In that, all the major parts like trade, commerce, industry and allied services are being included.