Growth in size and the need to better manage specialization often lead companies to adopt a functional structure.

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As companies grow, they often find it necessary to divide their operations into specialized units, which may take the form of separate departments or divisions. A functional structure is a form of organizational structure that groups together people who have similar skills or tasks, such as marketing, finance, or production. This type of structure allows companies to better manage specialization and improve efficiency.

Growth in Size and the Need to Better Manage Specialization