Convenience

Functional (U-Form) Design
The
functional design
is an arrangement based on the functional approach to depart-
mentalization. This design has been termed the
U-form
(for unitary) approach.
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Under
the U-form arrangement, the members and units in the organization are grouped into
functional departments such as marketing and production.
For the organization to operate efficiently in this design, there must be considerable
coordination across departments. This integration and coordination are most commonly
the responsibility of the CEO and members of senior management. Figure 6.2 shows the
U-form design applied to the corporate level of a small manufacturing company. In a
U-form organization, none of the functional areas can survive without the others.
Marketing, for example, needs products from operations to sell and funds from finance
CEO
Vice president,
operations
Vice president,
marketing
Vice president,
finance
Vice president,
human resources
Vice president,
R&D
Scientific
director
Labor relations
director
Plant human
resource manager
Controller
Accounting
supervisor
Regional
sales managers
District
sales managers
Plant
managers
Shift
supervisors
Lab manager
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gage
Lea
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F I G U R E 6 . 2
Functional (U-Form) Design for a Small Manufacturing Company
The U-form design is based on functional departmentalization. This small manufacturing firm uses
managers at the vice presidential level to coordinate activities within each functional area of the
organization. Note that each functional area is dependent on the others.
functional design
Based on the
functional
approach to
departmentalization