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CSEET · Business Laws and Management · Principles of Management and Modern Approaches

A company has many departments, and the work is divided by products, with each product division head controlling all functions such as production and sales for that product. This is an example of which type of organisation structure?

This is a divisional structure, because activities are grouped by product and each division head is responsible for all functions of that product. A functional structure would instead group employees by function such as production or sales across all products.

  1. ADivisional structureCorrect
  2. BFunctional structure
  3. CInformal structure
  4. DLine structure with no specialisation

Explanation

In a divisional structure, the organisation is grouped by product, market or region, and each division head handles all functions for that product. A functional structure groups by functions like production or marketing. An informal structure arises from social relations and is not formally designed.

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