The Different Types Of Organization Structures: Divisional Structure

Append below describes the advantages and disadvantages of the following type of organization structure:

· Functional Structure

· Divisional Structure

· Matrix 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.

Refer articles on Functional Organization Structure & Matrix Organization Structure

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