In what type of organizational structure are staff grouped by shared skills?

The functionally oriented structure organizes staff based on their shared skills and expertise within specific functional areas, such as finance, marketing, or human resources. This type of structure fosters specialization, allowing individuals to develop deep expertise in their respective fields and collaborate with others who have similar skill sets.

In a functionally oriented structure, each department or function operates independently but works towards the overall goals of the organization. This arrangement simplifies management and allows for efficient resource allocation within each department. Additionally, it enhances communication among staff members with similar skills, facilitating knowledge-sharing and innovation within functions.

In contrast, the matrix structure combines functional and project-based elements, leading to dual reporting lines, which can complicate communication and decision-making. The divisional structure groups employees based on products, projects, or geographical locations rather than skills, while the network structure often relies on partnerships and collaborations with external entities, rather than strictly grouping staff by shared internal competencies.