What Is Functional Management? (Approaces, Objectives & Use Cases)

Functional Management

The Definition

Functional Management is a management theory where the management tasks are divided into different functional areas, such as marketing, innovation, finance, production, and so on.

Functional Management is not new in the world of business. In fact, it is one of the oldest and most popular theories of management. In this system, all of the company functions are assigned to a specific manager rather than being assigned to one person who oversees many functions.

The two parts of an organization’s management – general and functional, or administrative and managerial – should always be considered together.

The Approach Of Functional Management

Functional management is a managerial approach that focuses on the tasks and functions of the organization. It is commonly used in organizations with a functional organizational structure.

This approach uses a top-down communication strategy, where the manager delegates tasks and responsibilities to subordinates and provides guidance on their decisions but does not involve himself in daily operations. The theory behind functional management is that all parts of an organization perform separate functions, thus delegating these tasks will help increase the productivity and efficiency of an organization.

The functional management approach is often criticized for its inability to cope with change because it relies heavily on the standardization of processes and workflows.

Here Are Some Step-wise Approaches To Follow –

Some Step wise Approaches To Follow

Firstly, it is important for managers to differentiate between functional and non-functional goals.

Secondly, it is important for managers to identify which tasks are best suited to which employees.

Thirdly, it’s essential for managers to recognize the different management styles and make decisions based on their preferences.

Fourthly, it’s necessary for managers not to forget about recognizing employees in a way that motivates them individually.

Lastly, managers need to manage expectations with their employees and balance these expectations with what they can realistically offer at a given time or situation.

The Objectives Of Functional Management

The objectives of functional management are to design and implement a direction for the company to drive towards, set the standards for the company’s operations, and work as a liaison between upper management and lower-level employees.

A functional manager is responsible for setting standards for operations. This can be done by designing a business plan that includes strategies to reach desirable outcomes.

Functional management is a type of leadership that is used to help employees find their strengths and work on them. It is not just about what you are good at. It’s also about what your team needs from you, so it can be a bit of a give-and-take with this type of management.

11 Use Cases Of Functional Management

11 Use Cases Of Functional Management

The purpose of functional management is to develop the potential of the employees. The 11 uses for functional management are:

1) Identify performance gaps in a timely manner – this helps the company identify what type of training an employee needs to help them develop their skills.

2) Improve team collaboration – this is especially important in large organizations where departments need to work together.

3) Improve customer service – by using functional management, companies can make sure that employees are focused on their assigned tasks and not distracted with other projects.

4) Keeps employees engaged in their work – with a clear understanding of what is expected from them, employees will be more engaged with their work and less likely to get bored which can lead to mistakes in the workplace.

5) Foster innovation in a company – with a clear understanding of what is expected from employees, employees can be encouraged to think outside the box and come up with new ways to improve the company.

6) Define performance expectations – by clearly defining performance expectations, employees will be able to know what is expected of them and they can also be held accountable for their performance.

7) Provide performance feedback – with a clear understanding of what the expectations are, employees can be given regular feedback on their performance and they can work to improve their performance.

8) Help employees to develop new skills – by identifying gaps in an employee’s performance, they can be trained to develop new skills.

9) Identify the right people for the job – this is especially important in large organizations where departments need to work together. This helps companies identify which employees are best suited for certain roles.

10) Make sure the right people are in the right place – with a clear understanding of what is expected from employees, companies can make sure that they have the right employees in the right roles.

11) Improve productivity – with a clear understanding of what is expected from employees, companies can make sure that they are focused on their work and not distracted by other tasks.


The Functional Management System has gone through many stages of change. It has evolved to meet the needs of organizations and individuals that were looking for a way to maintain order in their daily lives. As the world changes, so do functional management. 


1. https://en.wikipedia.org/wiki/Functional_management
2. https://jgdb.com/dictionary/functional-management

Last Updated on February 9, 2022 by

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