What type of structure is characterized by handling each product line as a self-contained division?

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Prepare for UCF MAN3025 Management of Organizations Exam 3 with practice questions, flashcards, and explanations. Master the concepts and excel in your test!

The correct answer is a divisional structure. In a divisional structure, an organization is divided into semi-autonomous sections or divisions that are responsible for specific product lines or markets. Each division operates independently and has its own resources, including management, operations, and support services, allowing for specialized focus and agility in responding to changes in the market or consumer demand. Divisional structures facilitate a more flexible and tailored approach to managing various product lines, which can enhance innovation and competitiveness.

In contrast, a network structure entails a more decentralized approach where the organization collaborates with external entities, focusing on outsourcing functions rather than managing product lines internally. A product structure is often synonymous with divisional structures, but it usually implies a more specific focus solely on managing products rather than integrating the broader resources associated with a division. Lastly, a functional structure organizes a company based on specialized functions (such as marketing, finance, and production), leading to a more centralized form of management that may not offer the agility or independence seen in a divisional approach.