decisions are made by department heads, not the founder;

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Functional
The functional structure involves division into departments or divisions that have managers. The main differences from the linear structure are:

Communication occurs horizontally - between departments, and not from top to bottom, as in linear communication.
Let's say a company has a sales director and a production director. The first is responsible for the sales department, the second - for the workshop and production department. Due to this, all employees understand the chain of command. At the same time, specialists in the production department can request information from the sales department, since all departments in the functional structure interact with each other.

This option is suitable for small and medium businesses, it is used even in cayman islands phone number list factories. The founder has less responsibility, since the main part of the work is on the heads of departments and divisions. Therefore, the functional structure can relieve the founder.

The main advantage of such a system is the efficient operation of the company. All managers specialize in specific tasks that correspond to their experience and professional skills. The founder may lack the necessary competencies to understand everything at once.

But this is also the disadvantage of the structure: without strong and experienced managers, there is a risk of making critical mistakes. For example, the production director may incorrectly build the quality management system. The enterprise will release defective products, and customers will be dissatisfied.


Employees can interact with managers from different areas
Linear-functional
Linear-functional structure is a combination of the two previous methods of company management. Here, as in the functional structure, there are divisions into departments and directions, and each has its own management. Only additional line managers also appear.

For example, the director develops a marketing strategy and plans its implementation together with the head of the department. Then the head of the marketing department sets tasks for subordinates and monitors the results.