Functional Strategy in the Organization

The functional strategy focuses on functional areas of the organization such as research and development, marketing, finance and human resource (Schermerhorn, 2010). A healthcare organization that might apply this strategy is a hospital. The strategy helps the organization to achieve its corporate and business unit objectives and strategies by maximizing resource productivity (Hunger, Wheelen, Hoffman & Bamford, 2015). Moreover, the approach is critical since it helps to develop and nurture distinctive competence that would provide an organization with a competitive advantage (Hunger, Wheelen, Hoffman & Bamford, 2015). Since functional strategy concerns with deploying a specialist within a functional area such as human resource, the management of a hospital can assign employees tasks that best suit their skills. For instance, it would be logical to assign an employee a human resource task instead of finance or research and development. Employees are most valued assets in a hospital. Therefore, if a hospital adopts the use of teamwork in service delivery, then it will increase the quality of services offered and productivity. With research and development strategy, the management of a hospital can concentrate on product innovation and process improvement.



Hunger, J. D., Wheelen, T. L., Hoffman, A. N., & Bamford, C. E. (2015).  Strategic Management and Business Policy (14th ed.). Upper Saddle River, NJ: Pearson Education.

Schermerhorn, J. R. (2010). Management. Hoboken, N.J: Wiley.

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