Which of the following is NOT a type of divisional structure?

The correct answer is that the functional structure is not considered a type of divisional structure. A divisional structure is typically organized around specific products, markets, or geographic regions. This means that each division operates semi-autonomously, focusing on its distinct area, whether that be a specific product line, a geographical area, or a particular market segment.

In contrast, a functional structure organizes a company based on specialized functions or departments, such as marketing, finance, human resources, and operations. This structure is centralized, with departments focusing on their specific roles across the entire organization rather than operating as independent divisions.

Understanding this distinction is important: divisional structures promote flexibility and responsiveness in diverse markets or product areas, while functional structures streamline operations and promote efficiency within specialized functions. Recognizing these differences can help in making informed organizational design choices that align with strategic goals.