What type of organizational structure groups people together based on similar skills or knowledge?

The functional structure is characterized by grouping individuals based on their specific skills, expertise, or knowledge. This type of organization typically involves departments such as marketing, finance, human resources, and production, where employees with similar functions work collaboratively to achieve the organization's goals. This structure allows for greater efficiency and specialization, as people with similar skills can share knowledge, mentor one another, and improve overall productivity within their designated departments.

In a functional structure, the clear delineation of roles and responsibilities helps facilitate streamlined decision-making. Employees understand their specific contributions within the larger context of the organization's objectives, making it easier to manage tasks and enhance collaboration among team members with similar competencies. This focus on specialized skills enables organizations to capitalize on individual strengths while fostering an environment of professional development.