Divisional structure
Divisional structure is an organizational structure that groups employees into units by product, service, customer, or geographical market area.
Definitions
According to Organizational Behavior by Robbins and Judge (17th edition),
- Divisional structure. An organizational structure that groups employees into units by product, service, customer, or geographical market area.
According to Management by Robbins and Coulter (14th edition),
- Divisional structure. An organizational structure made up of separate, semi-autonomous units or divisions.
According to the Strategic Management by David and David (15th edition),
- 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.
