Append below describes the advantages and disadvantages of the following type of organization structure:
· Divisional Structure
Divisional structures are popular among organizations with diverse operations cutting across many products, areas, and customers
Major Advantages Of Divisional Structure
· 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.