Management help needed about a business question

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avan41

Business Finance

Description

Explain how the following somewhat match each other: 

• divisional structure with departmentalization by product

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Explanation & Answer

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Divisional structure is a type of organization structure whereby each function of the organizational function is grouped as a division and allocated all the necessary resources and functions within it to support that product line or geography.

Departmentalization by product means that means that all the activities related to the product or service are under the control of one manager.


Therefore divisional structure with departmentalization by product  is an organizational structure whereby each function of an organization is treated as a division and all the processes related to the production of a certain product are under the control of one manager.



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