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__________ comprises of separate business units or divisions wherein each unit has a manager responsible for performance and who has authority over the unit.

Solution

✅ Correct Option: 4

Option 1 -> Matrix organisation involves dual reporting relationships where employees report to both functional and project managers, not separate autonomous business units.

Option 2 -> Staff organisation refers to advisory/support positions that assist line managers but lack direct authority over business operations.

Option 3 -> Functional organization groups activities by business functions (like marketing, finance, HR) rather than creating separate independent divisions.

Option 4 -> Divisional structure creates separate business units/divisions, each with its own manager who has complete authority and accountability for that unit's performance.


Hence, Option 4: Divisional structure -> This structure organizes the company into semi-autonomous divisions based on products, geography, or markets, where each division operates as a separate business unit with a manager having full responsibility and authority for its performance -> correct

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