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Zoom chose a functional organizational structure to manage teams, with decision-making and
operations passing through functional departments with specific areas of expertise. A functional
structure is a business structure that divides a corporation into departments depending on their areas of
expertise. Functional managers or department heads oversee these departments, which serve as
functional units. Team members in each department report to department heads, who then report to
the company's senior management, informing them of the state of their functional areas.

A sales department, a production department, a human resources department, an information

technology department, a marketing department, and a legal department are all examples of
departments in a functional organization structure. These departments are divided into separate
geographical areas in certain multinational organizations. They may just inhabit various portions of the
same office building in smaller organizations. Companies with a functional structure, such as Zoom, may
benefit from three distinct advantages. Workplace that is stable: Employees may easily comprehend the
scope of their task and what is expected of them in a stable environment provided by a functional
organizational structure. Built for organizational efficiency: Functional structures are popular in large
corporations since each department may operate independently, resulting in higher efficiency. A
disagreement in one area does not always imply a bottleneck throughout the organization. Makes use of
people's assets: Employees are placed where they are most required in a functional framework, and
they are not assigned duties that are above their skill set. Employees who work on tasks that are within
their areas of expertise are frequently more productive.

To manage teams, Zoom established a functional organizational structure, with decision-making and
operations moving through functional divisions with specific expertise. A functional structure is a
business structure that splits a company into sections based on their specialties. These departments,
which operate as functional units, are overseen by functional managers or department heads. Each
department's team members report to department heads, who then tell the company's top
management of the status of their functional areas. In a functional organization structure, departments
such as sales, production, human resources, information technology, marketing, and legal are all
examples of departments. In some global corporations, these departments are separated into
geographical areas. In smaller firms, they may simply occupy different parts of the same office building.
Three main advantages may be available to companies with a functional organization, such as Zoom.
Stable work environment: In a stable atmosphere offered by a functional organizational structure,
employees may easily understand the extent of their activity and what is expected of them. Designed to
maximize organizational efficiency: Large firms choose functional architecture since each department
may operate independently, resulting in increased efficiency. A dispute in one area does not always
suggest an organizational bottleneck. Utilizes people's assets: Employees are placed in functional
frameworks where they are most needed, and they are not given tasks that are above their skill set.
Employees who work on assignments in their areas of competence are often more productive