What is a Segregated Structure?

What is a Segregated Structure?

• A. Entirely outsourced with no internal functions
• B. All operations managed by the central core
• C. Bottom half - low level - shared service centres or outsourced; Top half - Advisory Roles, Consultants (Correct)
• D. A matrix structure with cross-functional teams

Answer: (C)

Segregated structure means the organization splits work into two distinct layers: a lower level where routine, transactional tasks are carried out—typically by shared service centers or outsourced providers—and a higher level where strategic, advisory work is done by a central core or by consultants. This separation keeps execution efficient and standardized at the bottom, while reserving governance, analysis, and strategic guidance for the top. The described setup matches this idea: the bottom half handles execution through shared services or outsourcing, and the top half consists of advisory roles and consultants, maintaining clear division between operational work and strategic input. This differs from models that push everything into a central core or outsource everything, and from matrix structures that mix cross-functional teams.

Segregated structure means the organization splits work into two distinct layers: a lower level where routine, transactional tasks are carried out—typically by shared service centers or outsourced providers—and a higher level where strategic, advisory work is done by a central core or by consultants. This separation keeps execution efficient and standardized at the bottom, while reserving governance, analysis, and strategic guidance for the top. The described setup matches this idea: the bottom half handles execution through shared services or outsourcing, and the top half consists of advisory roles and consultants, maintaining clear division between operational work and strategic input. This differs from models that push everything into a central core or outsource everything, and from matrix structures that mix cross-functional teams.