Final answer:
The organizational structure in which departments are defined by the services they contribute to the organization's overall mission is called a functional structure. It allows for specialization and efficiency within each department. A product structure and a matrix structure are other types of organizational structures.
Step-by-step explanation:
The organizational structure in which departments are defined by the services they contribute to the organization's overall mission is called a functional structure. In a functional structure, each department is responsible for a specific function, such as marketing and sales, operations, and HR. This type of structure allows for specialization and efficiency within each department.
For example, in a company with a functional structure, the marketing department would handle all marketing-related activities, such as market research, advertising, and promotions. The operations department would be responsible for managing the production process, while the HR department would handle all aspects of human resource management.
In contrast, a product structure organizes departments based on the products or services the organization offers. This structure allows for specialization and focus on specific product lines or business units. Finally, a matrix structure combines elements of both functional and product structures, creating cross-functional teams that work together on specific projects or initiatives.