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The term that refers to the letters at the end of a file name, indicating the way the data in the file is organized, is known as the file extension. File extensions typically consist of a period followed by a series of letters, such as ".txt" for text files, ".jpg" for image files, or ".exe" for executable files. This notation helps the operating system and users recognize the format of the file and understand what type of applications can open it.

The file extension plays a crucial role in file management, as it allows programs to respond appropriately when a file is opened. For instance, a file with a ".docx" extension will be associated with word processing software, while a ".mp3" file is recognized as an audio format. Thus, the file extension is a key identifier for understanding the content and structure of the file itself.