7 Organizational Structure Types With Examples

A functional organizational structure, sometimes called a role-based structure, is where tasks and responsibilities are grouped based on specific functions or roles within the company. It’s one of the most commonly used organizational structures. A functional organizational structure starts with roles with the highest levels of responsibility at the top and then goes down from there. Departments, teams or employees are organized based on their specific roles or skills and their function within the company. Typically, each department or team is managed independently. An example of a functional organizational structure would be a company that has several separate departments, such as accounting, human resources, marketing, sales and production.

Functional organizational structure allows for specialization amongst teams and scalability while also providing a clear chain of communication and command. Examples of companies that use a functional organizational structure include Amazon and Starbucks. 

Pros:

• Fosters scalability
• Promotes operational efficiency
• Allows employees to focus on their own roles
• Encourages specialization 
• Helps teams and departments function independently

Cons:

• May lead to poor cross-department communication
• Can create silos in the organization
• May hinder decision making
• Narrow scope of how employee’s roles relate to company objectives

Accounting Department

The accounting department typically encompasses several key roles and functions crucial to the financial management of the organization. These roles include chief financial officer (CFO), accountants, tax specialists, financial analysts and payroll specialists.

Human Resources Department

In a functional organizational structure, the human resources department plays a crucial role in workforce organization. Typical roles within a human resources department include HR manager or director, recruiting specialist, training and development specialist, benefits and compensation manager, employee engagement and wellness coordinator, diversity and inclusion specialist and compliance specialist.

Marketing Department

Within a functional organizational structure, common marketing roles would include a marketing manager and marketing coordinator or specialist, which could be broken down into more niche roles such as social media marketing specialist, content creation specialist, campaign coordinator, SEO analyst and more. This breakdown allows for specialization within each role.

Information Technology Department

Common IT positions in a functional organizational structure include the IT Manager or Director, overseeing the overall technology strategy and infrastructure, and Systems Administrators or Network Engineers, responsible for day-to-day maintenance, troubleshooting and optimization of the organization’s IT systems. This functional arrangement ensures a focused and efficient approach to both strategic IT planning and operational support.