Functional (Dynamic) team - is a group of people that is formed automatically based on either its position or skillset. It means that in order to set up such team, you firstly need to associate your users with certain skills or positions. The main purpose of such team is to increase the flexibility of teams and it will allow to manage members of the team by simply adding or removing certain skills or positions from the user. Also, this can be used to track teams from different locations or for organisations that have both vertical and horizontal hierarchy.
When you have your Positions and Skills assigned to users:
You can try to setup a Functional team based on one of these criteria, for this go to Configuration→Teams→Functional (Dynamic) teams→Create a new team→Choose skill/position you want to form a team based on:
After you click 'Create' system will search for every user that has this skill/position and add him/her to this new team:
Only users with Admin and Manager user roles have permissions to setup and edit such teams.
How to manage geographically dispersed team?
You can use 'Skills' to also track/manage users' location, for this we recommend to setup a new 'Knowledge level' called location and add it to users. For this go to Configuration→Users→Users Knowledge Levels→Create New Knowledge Level→Set a name for 'location tag' and click 'Update':
Then you can go to Users Skills and assign users to their Location: