Definition of Divisional Structure



A divisional structure is a form of organization’s designing where it is divided into small divisions who are independent to take decisions of divisional operations. These divisions are still answerable to the main central authority which communicates the organizational strategy to all divisions. Each division manages its day-to-day operations with an allocated budget from the organizations.

 


Large or multidivisional organizations (M-form) have multiple divisions for one same product. All divisions work closely with each other for the same product or service. The biggest advantage of divisional structure is that if one division fails to perform, It doesn’t threaten other divisions.

 

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