Which term describes a department or division where people have similar specialties or skills, such as accounting or IT?

Which term describes a department or division where people have similar specialties or skills, such as accounting or IT?

• A. Functional structure
• B. Front-back structure
• C. Matrix organization
• D. Functional area

Answer: (D)

Grouping people by their specialty into a department is about a functional area. When staff share skills like accounting or IT, they come together as a functional area within the organization. This naming emphasizes that the department exists to perform a specific function across the company, rather than being organized around products or processes. A functional structure describes the whole company organized by these functions, but the term for the department itself is functional area. Other structures, like front-back or matrix, mix or layer reporting differently or combine functions with products, but they don’t name a single department by its specialty the way "functional area" does.

Grouping people by their specialty into a department is about a functional area. When staff share skills like accounting or IT, they come together as a functional area within the organization. This naming emphasizes that the department exists to perform a specific function across the company, rather than being organized around products or processes. A functional structure describes the whole company organized by these functions, but the term for the department itself is functional area. Other structures, like front-back or matrix, mix or layer reporting differently or combine functions with products, but they don’t name a single department by its specialty the way "functional area" does.