What is the difference between a functional organizational structure and a divisional structure in a sport organization?

• A. A functional structure organizes by product lines, while divisional groups by functions like marketing and operations.
• B. A functional structure groups roles by function across the entire organization, while a divisional structure groups activities by product, sport, region, or event, each with its own functional units.
• C. A functional structure concentrates decisions at the top and a divisional structure distributes all decisions to local units.
• D. A functional structure uses dual reporting lines, while a divisional structure uses single reporting.

Answer: (B)

Organizational design in sport hinges on how work is grouped and where decision-making rests. In a functional structure, people are organized by their functions across the entire organization—for example, marketing, finance, operations, and human resources exist as separate departments that serve all sports or events. In a divisional structure, the organization is arranged around products, sports, regions, or events, and each division contains its own functional units (like marketing, operations, and finance) tailored to that division’s scope.

The key difference is where grouping occurs and how autonomy is allocated. Functional design concentrates expertise and centralized control within functional areas, which can be efficient but may hinder coordination across different sports or regions. Divisional design creates closer alignment and faster responsiveness within a specific sport or region by embedding functional units within each division, though it can lead to duplication of functions and higher costs.

So, the best way to describe the difference is: a functional structure groups roles by function across the organization, while a divisional structure groups activities by product, sport, region, or event, each with its own functional units.