Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Identify the organisational structure that leads to product specialisation.

Options:

Functional

Matrix

Divisional

Informal

Correct Answer:

Divisional

Explanation:

The correct answer is option (3) : Divisional

Functional Structure: A functional structure is a type of organizational structure that groups employees and activities based on their functions or roles within the organization. In a functional structure, the organization is divided into various functional departments, each responsible for a specific set of tasks and activities.

Divisional Structure: A divisional structure is an organizational design that groups employees and activities based on product lines, geographic locations, customer segments, or other divisions, rather than by functional roles. In a divisional structure, the organization is organized into autonomous divisions or units, each responsible for its own functions, such as marketing, production, and finance. and leads to product specialisation.