In a Divisional Structure, groups are formed by which criteria?

In a Divisional Structure, groups are formed by which criteria?

• A. Occupational Specialties
• B. Product Lines or Geographic Regions or Customers
• C. Functional Departments
• D. Matrix Projects

Answer: (B)

Divisional structure groups the organization around the outputs it delivers to the market, specifically by product lines, geographic regions, or customer types. Each division focuses on its own product or market and carries its own resources to serve that area, which is why this setup is described by those criteria. This arrangement enhances accountability and responsiveness to different markets or products. The other options point to different organizational forms: grouping by occupational specialties aligns with a functional structure where departments are built around expertise (like marketing, finance, HR). A matrix-projects setup blends functions with project lines, not pure divisional grouping.

Divisional structure groups the organization around the outputs it delivers to the market, specifically by product lines, geographic regions, or customer types. Each division focuses on its own product or market and carries its own resources to serve that area, which is why this setup is described by those criteria. This arrangement enhances accountability and responsiveness to different markets or products.

The other options point to different organizational forms: grouping by occupational specialties aligns with a functional structure where departments are built around expertise (like marketing, finance, HR). A matrix-projects setup blends functions with project lines, not pure divisional grouping.