Divisional structure

Divisional structure - resources and results. Divisional...

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Divisional structure Because managers in large companies may have difficulty keeping track of all their company's  products and activities, specialized departments may develop. These departments are divided  according to their organizational outputs. Examples include departments created to distinguish  among production, customer service, and geographical categories. This grouping of departments is  called divisional structure (see Figure 2  ). These departments allow managers to better focus their 
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Unformatted text preview: resources and results. Divisional structure also makes performance easier to monitor. As a result, this structure is flexible and responsive to change. Figure 2 The divisional structureDisney in the early 1990s. However, divisional structure does have its drawbacks. Because managers are so specialized, they may waste time duplicating each other's activities and resources. In addition, competition among divisions may develop due to limited resources....
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