Which organizational structure divides departments based on employees' expertise?

The functional organizational structure is designed to group employees based on their specialized knowledge or skills. In this arrangement, departments are formed around specific functions or areas of expertise, such as finance, marketing, human resources, or clinical services in a healthcare setting. This structure allows organizations to enhance efficiency and develop expertise in key areas by enabling employees to work alongside others who have similar skill sets and knowledge bases.

By organizing teams around function, communication and collaboration within departments typically improve, leading to better performance in each area. This structure supports the depth of expertise necessary for complex tasks and projects, which is particularly important in industries like healthcare, where specialized knowledge can significantly impact service delivery and patient outcomes.

In contrast, while flat and multi-divisional structures can also be effective in promoting communication and agility, they do not specifically focus on dividing departments based on expertise. The matrix organizational structure combines elements of both functional and divisional designs, emphasizing flexibility and cross-department collaboration but not strictly dividing departments by expertise alone.