Question

Which of the following is strength of the divisional structure?
1. Employees have more than one boss
2. It gains advantages due to work specialization
3. It is based solely on teams
4. It focuses on results

Answer 1

Correct Answer - Option 4 : It focuses on results

The correct answer is It focuses on results.

• A divisional structure is a manner of designing an organization so that it is split up into semi-autonomous units called divisions.
  • While the divisions have control over their day-to-day operations, they still are answerable to a central authority that provides the overall strategy for the organization and coordinates its implementation among the divisions.
  • Large corporations, especially large multinational corporations, utilize a divisional structure. 

• Advantages/Strengths of divisional structure-
  • It allows for a high degree of specialization.
  • Each division can specialize and focus its efforts on its particular product, service or market and not be distracted by competing interests. Hence, it focuses on results.
  • It provides a great deal of flexibility for the overall organization.
  • The structural nature of a division can foster a work environment where workers have an enhanced sense of purpose and a greater spirit of cooperation.