Within the broader category of functional structures, businesses often apply variations depending on their complexity and goals. The four common function-based structures are simple functional, centralized functional, decentralized functional, and hybrid functional.
A simple well-operated structure has basic departmental separation. Centralized functional structures retain tight control from top leadership. Decentralized functional models give more decision-making power to department heads. Hybrid models may blend functional units with product or regional divisions to enhance agility. These variations help tailor the structure to operational needs.
