What are the divisions of a company often referred to as?

The term "functional units" is often used to describe the divisions of a company because it emphasizes the specific roles and responsibilities associated with each unit. These functional units are organized based on the particular functions they perform within the organization, such as marketing, finance, human resources, and production. This structure allows for a clear delineation of tasks and accountability within the company.

Using "functional units" highlights the operational efficiency and specialization within organizations, making it easier to manage and coordinate activities. This approach enables organizations to optimize their performance by focusing on distinct areas of expertise, thereby improving overall effectiveness and responsiveness to market demands.

Other terms like departments, branches, and sections can also refer to divisions within a company but may not capture the essence of functionality as effectively as "functional units." For instance, "departments" is a broader term that may not distinctly convey the functional aspect, while "branches" typically refers to locations rather than specific functions. "Sections" may imply smaller parts of a larger unit but lacks the focus on operational roles that functional units provide.