The divisional structure is sometimes called multidivisional structure and it groups employees by products and services, by geographic regions, or by customers.

Divisional Structure

An organizational layout where the company is divided into semi-autonomous units or divisions, each focused on a specific product line or geographic area.

Multidivisional Structure

A form of organizational structure where a company is divided into semi-autonomous divisions, each with its own set of functional units like marketing and finance.