In which type of organizational structure do departments operate independently while sharing resources?

The correct choice is divisional structure. In a divisional organizational structure, the company is divided into semi-autonomous units or divisions, each typically focused on a particular product line, market, or geographical area. While these divisions operate independently, they still share certain resources such as human resources, procurement, or IT services, which provides efficiencies of scale.

This structure allows divisions to respond more quickly to changes in their specific environment, as they have the authority needed to make decisions relevant to their operations. Additionally, sharing resources among divisions can help reduce redundancy in operations, as specialized functions (like finance or marketing) can be centralized while the divisions focus on their core activities.

In contrast, the matrix structure involves a dual reporting system that combines functional and divisional approaches, which can lead to complexity and potential confusion in resource allocation. The product structure organizes the company around individual products but may not emphasize the sharing of resources as distinctly. The functional structure groups employees based on specialized roles (like marketing, finance, etc.), leading to greater specialization but less independence among departments, making it less likely to allow departments to operate independently while sharing resources.