The type of organization structure based on product lines and supported by functions is:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Divisional Structure
Option (1) Functional Structure — Incorrect. Here the primary grouping is by function, so the firm is divided into production, marketing, finance and personnel departments and keeps one production department for every product.
Option (2) Divisional Structure — Correct. The firm is split by product lines, and each division is a self-contained unit with its own production, marketing and finance staff under a divisional manager. The functions are still there, but they sit inside each division and support it, which suits a large firm making several different products.
Option (3) Network Structure — Incorrect. No such structure; the two forms are functional and divisional.
Option (4) Informal Structure — Incorrect. The informal organisation is the network of social relationships that grows on its own; it is not deliberately designed around product lines.
NCERT (2026-27 Edition):
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