In which structure are people with diverse occupational specialties grouped by similar products or services, customers, or geographic regions?

• A. Simple Structure
• B. Functional Structures
• C. Divisional Structure
• D. Matrix Structure

Answer: (C)

Grouping people by similar products or services, customers, or geographic regions is the divisional structure. In this setup, each division concentrates on a particular product line, customer segment, or region and operates with its own set of functional resources, giving it autonomy to tailor strategies and operations. This structure is well-suited for organizations with diverse offerings or markets because it improves focus and accountability and speeds decision making within each division. It contrasts with a simple structure, which is flat and centralized around a single owner; a functional structure, which groups by specialty (marketing, finance) and can hinder cross-divisional coordination; and a matrix structure, which combines two dimensions and can create dual reporting lines and greater complexity.