"These are typically hierarchical arrangements based on organizational control, lines of authority, or technical domain. These arrangements determine…

The description provided is a textbook definition of a functional organizational structure. This model groups employees based on their specific skills, expertise, and business functions, such as IT, finance, or human resources. Key characteristics include a clear hierarchical arrangement, specialized departments, and defined lines of authority within each function. The structure is designed to promote efficiency and deep expertise within these specialized areas, which aligns perfectly with the scenario described.

B. Divisional: This structure organizes teams around products, services, or geographical regions, not by specialized business functions as described.
C. Matrix: This is a hybrid model where employees report to both a functional manager and a project/product manager, which is not mentioned.
D. Flat: This structure has minimal or no middle management, contradicting the description of "hierarchical arrangements" and "different levels."

1. AXELOS. (2020). ITIL® 4 Specialist: Create, Deliver and Support. TSO (The Stationery Office).

Section 2.2.1.1, Functional structure: "These are typically hierarchical arrangements based on organizational control, lines of authority, or technical domain... The organization may be divided into internal groups based on functional areas, such as HR, IT, finance, marketing, etc." This text directly matches the question's description.

Section 2.2.1, Organizational structures: This section provides context and definitions for the different structures, contrasting the functional model with matrix, divisional, and flat structures.