In this type of Organizational structure, the cost may increase since there may be a duplication of activities across products. Identify the organizational structure.

Divisional Structure

The correct answer is option (3) : Divisional Structure

Divisional Structure

• In a divisional structure, the organization is divided into separate divisions or units, each focused on a specific product, services, or market. This can lead to duplication of functions and resources across different divisions, potentially increasing costs.

Functional Structure :

• In a functional structure, the organization is divided into departments or functions based on specific job roles or functions, such as marketing, finance, human resources, and production. Each department is specialized in its area of expertise.

Informal Structure:

• The informal structure of an organization is not an official or designed organizational structure but rather a network of informal relationships, communication, and interactions among employees. It may involve connections and influence that exist outside of the formal chain of command.