The organization is grouped by areas of speciality within different functional areas (e.g., finance, marketing, and engineering).
Some refer to a functional area as a "silo".
Besides the heads of a firm's product and/or geographic units the company's top management team typically consists of several functional heads such as the chief financial officer, the chief operating officer, and the chief strategy officer.
[1] Communication generally occurs within a single department.
The main advantage of this type of organization is that each employee has only one manager, thus simplifying the chain of command.