Functional structure: what it is and what it means

The functional structure is an organizational model that groups people by homogeneous function — sales, production, administration, marketing — with vertical coordination: each function reports to its own manager, and horizontal coordination between functions goes through central management. It is the most common model in Italian companies with up to fifty to one hundred employees, offering clarity of responsibilities and the development of specialist skills.

Distinctive: by homogeneous function
Distinctive: vertical coordination
Essential: each function reports to its own manager
Essential: horizontal coordination between functions goes through central management
Constant: clarity of responsibilities

Glossary

Functional structure

An organizational model that groups people by homogeneous function with vertical coordination: in Italy, the most common model in companies with up to fifty to one hundred employees.