In which organizational structure are teams formed based on product lines or project needs rather than functional specialties?

The divisional organizational structure is characterized by the formation of teams that are specifically organized around product lines, projects, or market segments, rather than being strictly aligned with functional specialties like finance, marketing, or operations. This structure facilitates a focus on particular products or services, allowing teams to operate more autonomously and respond quickly to changes in their respective markets or customer demands.

In a divisional structure, each division typically has its own resources and operates almost as a separate business entity, which enables greater flexibility and a better alignment with the goals of specific products or services. This contrasts with functional structures, where employees are grouped based on their job functions and responsibilities, which may not prioritize the specific needs of individual products or projects.

The flat and hierarchical structures refer more to the number of levels of management and the general design of authority within an organization, rather than how teams are organized around projects or products. Thus, the divisional structure stands out as the one that emphasizes team formation according to product lines or project requirements.