An organizational design that groups departments based on organizational outputs is called:

Question

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A divisional structure is one in which departments are grouped based on organizational outputs, such as products or services, geographic location, or customer base. This structure is often used in large, complex organizations where it is important for each division to have its own resources and decision-making authority. In contrast, a functional structure groups departments based on similar functions, such as finance or marketing, and a matrix structure combines functional and divisional structures. A team structure is a type of organizational design that focuses on collaboration and cross-functional teams rather than departmental structures.

An Organizational Design That Groups Departments Based on Organizational Outputs