A divisional organizational structure refers to a system in which a company divides its employees into groups based on products or markets rather than job roles. Some businesses have marketing, sales, and communications departments, whereas a divisional organization has teams dedicated to a specific region or product. People are grouped in this Divisional Organizational Structure based on the product or service they provide, not their work. A large corporation like General Electric, for example, has divisions for electronics, transportation, and aviation, each with its team of accountants, marketers, and so on. A parallel divisional organizational structure is made up of divisions. These divisions may be in charge of a specific product or service, a geographic location, or a customer group.
