Append below describes the advantages and disadvantages of the following type of organization structure:
· Divisional Structure
DIVISIONAL STRUCTURE |
Divisional structures are popular among organizations with diverse operations cutting across many products, areas, and customers |
Major Advantages Of Divisional Structure |
Includes: · greater flexibility in responding to environmental changes · improved coordination across functional departments · clear points of responsibility for product or service delivery · expertise focused on specific customers, products and regions · easier growth or reduction in size by adding or deleting divisions |
Major Disadvantages Of Divisional Structure: |
· May reduce economies of scale, disperse technical competence and expertise, · Even create unhealthy rivalries among operating units. · May also increase costs by duplicating resources and efforts across divisions and causing an overemphasis on divisional versus organizational goals. |
Refer articles on Functional Organization Structure & Matrix Organization Structure |