Divisional organizational structure

Definition
A divisional organizational structure is a large scale
organizational structure that separates the company
based on product, services, or consumer. Each division
has a divisional manager who is responsible for the
working of his division and has full authority over it.

Dividing the whole organization according to the major

product to be manufactured by them.
Advantages
Each division can work as an independent unit.
Timely and effective decisions can be taken.
Divisional management improves the use of resources.
Quicker response to change in the market
environment.
Allows strategic development and implementation.
Disadvantages
This structure is not suitable for small organization.
It is difficult control each division.
Conflict between divisional heads
Division can bring compartmentalization that can lead to
incompatibilities.

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