Let’s talk about a functional structure

Описание: With a functional structure, you divide your organization into various departments and place employees there according to their skills, roles, or specialty.

This way, you get a company with multiple departments like engineering, design, marketing, sales, and so on, each managed independently by heads of departments.

In their turn, heads of departments have an executive who is in charge of several departments.
Finally, there’s a person with the highest level of responsibility at the top, usually, it’s the CEO.

The functional structure is hierarchical and centralized:
Workers in each team report to department heads.
Those report to the top management.
And top management develops further plans and gives directions back to middle management who implements them with teams.

Functional structure is strict and stable that’s why it works well for big companies that constantly produce the same products and have defined operations.