How are people typically grouped in a departmentalization by function structure?

In a departmentalization by function structure, individuals are organized based on their specialized functions or areas of expertise. This means that employees with similar skills, knowledge, and responsibilities are grouped together, which allows for increased efficiency and productivity within the organization. For example, a company may have separate departments for marketing, finance, human resources, and production, each staffed by individuals skilled in those specific fields.

This functional grouping fosters collaboration among team members who understand the intricacies of their area, enabling better communication and enhanced problem-solving abilities. Additionally, it provides clear lines of authority and accountability, as employees know who to report to within their specialty. This approach contrasts with other methods, such as grouping individuals randomly or solely based on social connections, which may not leverage their professional skills effectively.