Western Governors University (WGU) BUS2301 C483 Principles of Management Practice Exam

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What type of design is used when one manager oversees all functional areas for a specific product line?

Virtual

Network

Divisional

The correct answer is based on the concept of a divisional structure, which is characterized by a manager overseeing all functional areas for a specific product line. In a divisional design, the organization is divided into semi-autonomous units or divisions, each responsible for its own business functions, such as marketing, production, and finance, all focused on a specific product or market segment. This structure allows for greater flexibility and responsiveness to market demands since each division can operate independently and tailor its strategies to the specific needs of its product line.

Using a divisional structure enhances accountability because the manager has the authority to make decisions that directly affect their product line, promoting quick responses to changes and enabling better alignment with customer needs. In contrast, virtual, network, and horizontal structures do not centralize authority in this same way or do not organize around specific product lines, which is why they do not fit the scenario described in the question.

Horizontal

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