In any organization the relationship between functional areas and functions is an important part of its operations. The functionality that any business has is based on the needs of the customers, and changes are required to make them satisfied. The relationships between functional areas in a business form the foundation of any successful operation. But what are the relationships between functional areas?
When we talk about organizational structures we first talk about departments. But functional areas are themselves a part of a larger unit. These functional areas can be broken down into logical departments such as human resources, sales, marketing, etc. However, these functional departments do not all fall under a single departmental head. Rather they exist in groups such as functions, team members, projects, etc. In smaller organizations the functional areas can also take the form of departments, but the overall larger unit is called the department.
The relationship between functional areas and functions cannot be understood by looking at the function alone.
It is a matter of scale. The size of a firm, for example, does not mean that it will have a department for each functional area and these departments would then sub-divide into various teams each with their own director.
On the other hand, the relationship between functional areas in a business is much the same when you look at the smaller unit of the firm. These functional areas are often grouped together into smaller groups such as teams. Each team has a specific task to accomplish. Each team is led by a team leader who reports directly to the president or a senior manager. This structure within the company provides the framework upon which the different functional areas begin to operate.
This framework needs to be carefully monitored. If any functions begin to operate independently, chaos will ensue. Teams will begin to drift apart and the overall effectiveness of the company may be adversely affected. To ensure that this does not happen, the functions within the functional area need to be tightly monitored and the tasks assigned to them must be properly defined and carefully managed.
The relationships between functions and areas in a business are very important. They are the foundation upon which the other relationships within the firm and the structure of the firm itself are built. A firm without its functions and the relationships between these functions is like a ship without a rudder. It will simply capsize and sink. Likewise, a company without its functions and the relationships between these functions will flounder and drown in chaos. When the firm has its structure in place, it will be far more effective and therefore far more profitable.