Which organizational structure is grouped by areas of specialty within different functional areas, such as finance and marketing?

The organizational structure that is grouped by areas of specialty within different functional areas, such as finance and marketing, is known as the functional structure. In this model, an organization is divided into various departments or functions, each focusing on specific tasks or areas of expertise. This allows for specialization, where individuals become highly skilled in their respective fields, leading to increased efficiency and effectiveness in operations.

In a functional structure, employees with similar skills and roles are grouped together to enhance collaboration and communication within departments. For example, the finance department might handle budgeting and accounting, while the marketing department focuses on advertising and market research. This clear division of labor can streamline decision-making processes and improve overall productivity since departments can concentrate on their specific objectives without distractions from unrelated tasks.

This structure is particularly beneficial for organizations that operate in stable environments where tasks can be categorized neatly into functional areas. It allows for easy management and oversight of specialized functions, making it easier to establish performance standards and accountability.