What organizational structure is characterized by its focus on division of labor or specialization?

The correct answer is the functional organizational structure, which is primarily characterized by its focus on division of labor or specialization. In a functional structure, the organization is divided into distinct departments or functions, such as marketing, finance, human resources, and production. Each department is staffed with specialists who have expertise in their respective fields, allowing for greater efficiency and a higher level of skill development within each function.

This specialization enables employees to hone their skills, work more effectively within their roles, and contribute to the overall objectives of the organization. Such a structure fosters a high degree of operational efficiency as tasks are handled by individuals who are well-trained in related areas of work.

As opposed to other structures, such as divisional, where the emphasis might be on products or geography rather than specialization, or a matrix structure that combines functional and divisional aspects, the functional structure's primary focus is indeed on specialization and division of labor. Team-based structures promote collaboration across functions and may not emphasize individual specialization to the same extent, as they rely on individuals from different functions working together towards a common goal.