Modern production is characterized by a differentiation of the functions of management, which is the basis of the transition to a functional organization.
Functional organization increases the efficiency of management through the participation in the work of skilled professionals knowledgeable in specific areas of production and management and management and prepare a qualified decision. Such organization allows the release of line managers need a detailed knowledge of all sides of production management, to differentiate their work. Functional organization responsive to the needs of the practice the creation of new functional services.
Functional organization, however, violates the unity of stewardship and reduces the responsibility for the work, as the slave may receive instructions from several functional heads, sometimes resulting in depersonalization, reduction of responsibility and disregard for the principles of unity of command.
It should be noted that functional control does not completely rule out a linear control. However, it narrows the role of the latter due to the fact that the functional links are directly giving orders grassroots line units, and are formed the same functional units at the lower levels or levels of management.
So, along with a linear hierarchy is formed of the functional hierarchy" and decisions are passed by its steps. Of course, this leads to the so-called double subordination: stage management in General correspond to the structure of linear functional units of each stage at the same time subordinated to the head of the stage management and the appropriate functional level to the highest stage of management. Such dual subordination is aimed at the elimination of contradictions in functional structure, that is, the combination and integration of functions in each degree of control and specialization of the functions of management.