In which structure are people with diverse occupational specialties grouped by similar products or services, customers, or geographic regions?

In which structure are people with diverse occupational specialties grouped by similar products or services, customers, or geographic regions?

• A. Simple Structure
• B. Functional Structures
• C. Divisional Structure
• D. Matrix Structure

Answer: (C)

Grouping people by similar products or services, customers, or geographic regions is the divisional structure. In this setup, each division concentrates on a particular product line, customer segment, or region and operates with its own set of functional resources, giving it autonomy to tailor strategies and operations. This structure is well-suited for organizations with diverse offerings or markets because it improves focus and accountability and speeds decision making within each division. It contrasts with a simple structure, which is flat and centralized around a single owner; a functional structure, which groups by specialty (marketing, finance) and can hinder cross-divisional coordination; and a matrix structure, which combines two dimensions and can create dual reporting lines and greater complexity.

Grouping people by similar products or services, customers, or geographic regions is the divisional structure. In this setup, each division concentrates on a particular product line, customer segment, or region and operates with its own set of functional resources, giving it autonomy to tailor strategies and operations. This structure is well-suited for organizations with diverse offerings or markets because it improves focus and accountability and speeds decision making within each division. It contrasts with a simple structure, which is flat and centralized around a single owner; a functional structure, which groups by specialty (marketing, finance) and can hinder cross-divisional coordination; and a matrix structure, which combines two dimensions and can create dual reporting lines and greater complexity.