Explain divisional structure with an example and why it is also called product structure??

Arjun singh

Business organisational structure Organisational structure by product Product organisational structure is a framework in which a business is organised in separate divisions, each focusing on a different product or service and functioning as an individual unit within the company. What is a product based structure? In a product-based structure (also known as a divisional structure), you assign employees into self-contained divisions according to: the particular line of products or services they produce the customers they deal with the geographical area they serve The structure may have several layers of managers and employees. Each layer (ie division) can have its own marketing team, its own sales team, and so on. A manager typically reports to the head of the company by product type, eg sporting goods, housewares and general merchandise. Certain key functions (eg finance or human resources) may be provided centrally. For example, a computer software business may divide its structure according to its two distinct customer groups – home users and business users. In such an arrangement, all employees working on the development, sales or promotion of business software would in one division, while everyone working on software for home users would be in another.

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