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Management & Leadership vocabulary · Organisational Structure

Functional structure

Meaning in management & leadership, with examples

nounCommon term

In management & leadership, functional structure means: An organisational arrangement that groups people by specialist activity, such as finance, production or marketing.

In Turkish: fonksiyonel yapı

How it is used

Use when the main units follow functions rather than products, customer groups or regions.

Example sentences

  1. In the functional structure, all accountants belonged to one finance department.

    People with similar expertise are grouped under a common function.

  2. The company kept its functional structure but created temporary teams for major launches.

    Temporary collaboration does not necessarily change the underlying departmental structure.

Common collocations

  • adopt a functional structure
  • functional organisational structure
  • org chartA diagram that shows how an organisation is structured, with boxes for roles or people and lines showing who reports to whom.
  • matrix structureAn organisational structure in which employees report to two managers at the same time, usually a functional manager and a project or product manager.

More terms: Organisational Structure

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