Organisation design & structures · Core
Functional structure
Also called: function-based structure
ELI5
Grouping people primarily by specialist function such as finance, marketing or operations.
Used in conversation
“Keep functional structure on the dashboard, but show the definition and reporting period beside it.”
Pitch context
You will see “Functional structure” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches organisation design & structures.
Why it matters: In organisation design & structures, the definition can change who is affected, accountable, protected or entitled to act.
Caution
Employment law and workplace practice vary by jurisdiction and agreement.
Sources & evidence · 2
Direct term-level sources and supporting source families.
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
- U.S. Bureau of Labor Statistics — BLS GlossaryDirect source · primary · checked 2026-08-16