A divisional structure has a number of divisions below senior management. The divisions are often a complete corporate unit in themselves, or they may specialize in a particular component of the product. The divisions are divided into departments.
functional structure arises when people with similar occupational specialities come together to form formal groups. on the other hand, divisional structure separates the organisation based on their diverse occupational specialities in formal groups by certain characteristics such as similar product/services, customers, geographical locations etc
One advantage to having a multi divisional business is the fact that the business can expand into different industries. A disadvantage is the fact that one division can affect the profits of the entire organization.
Divisional structure: Divide the organization according to the type of work, region, product and so on. Large organization may break down into Rail, water, road and building division. Divisional structure divides the employees based on the product/customer segment/geographical location. For example, each division is responsible for certain product and has its own resources such as finance, marketing, equipments, maintenance..etc. Advantages this structures allows for flexibility and quick response to environmental changes. It also enhances innovation and differentioan strategies. Disadvantages: This structure results in duplication of resources because, for example we need to have equipment , for each division. Obviously, it does not support the exchange of knowledge between people working in the same profession because part of them are working in one division and the others are working in other divisions Divisional structure:Divide the organization according to the type of work, region, product and so on. Large organization may break down into Rail, water, road and building division. Divisional structure divides the employees based on the product/customer segment/geographical location. For example, each division is responsible for certain product and has its own resources such as finance, marketing, equipments, maintenance..etc. Advantages this structures allows for flexibility and quick response to environmental changes. It also enhances innovation and differentioan strategies. Disadvantages: This structure results in duplication of resources because, for example we need to have equipment , for each division. Obviously, it does not support the exchange of knowledge between people working in the same profession because part of them are working in one division and the others are working in other divisions
Matrix StructureThe matrix structure groups employees in the fields of function and product. Typically the matrix structure is focused around individual products, product lines or functions. For example, Product C and Product D separate structures with different chains of command: Each might include sales support, IT support, customer service support and operations support. The matrix structure is complex but allows for a focused approach to both products and functions.Divisional StructureThe divisional structure is separated by nearly independent departments along the lines of product, market or geographic locations. The larger the organization, the more likely it has a divisional structure, which is simpler to manage and gives clearer lines of control. A company might have separate divisions for each product, each market area the company sells in or each geographic location where operations reside
Geographic structure groups employees together based upon specific geographic location. This is often used by large companies that operate in many areas throughout the United States or in both the U.S. and overseas.
garment industry?
What is product divisional structure?
divisional
Divisional Structure
Divisional
A divisional structure divides the company into divisions that bring together those employees involved with a certain type of product or market service
Most likely a matrix structure of functional and divisional structures.
hillton hotel
buisness is too hard.
edoy!!
A divisional organization relies on product departmentalization.The firm creats product-based divisions, each of which may then be managed as a separate enterprise.
Would you recommend a divisional structure by geographic area, product, customer, or process for a medium-sized bank in your local area? Why?