Decentralized structure

Decentralized structure is also called a divisional structure, this type of organizational design is based on having various profit centers or segments by geographic area, by product or service, by customer, or by process. With a divisional structure, functional activities are performed both centrally and in each separate division.

Definition

According to the Strategic Management by David and David (15th edition),

Decentralized structure. Also called a divisional structure, this type of organizational design is based on having various profit centers or segments by geographic area, by product or service, by customer, or by process. With a divisional structure, functional activities are performed both centrally and in each separate division.