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Questions
State its any two advantages of the divisional structure
State its any four advantages of divisional structure
Discuss the advantages of Divisional Structure.
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Solution 1
Advantages of divisional structure:
- Flexibility and Initiative: Under the divisional structure, each division functions independently. The divisional heads have the authority to take their own decisions. This promotes flexibility and initiative in the organisation.
- Growth: Divisional structure enables easy growth and expansion of the organisation. This is because new divisions can be easily added without affecting existing divisions.
- Managerial Efficiency: Under the divisional structure, each division is headed by a division head. The division head performs multiple functions for the division. In this way, he gets multiple opportunities for new experience and development. It helps in developing his skills and knowledge
- Gauging Performance: Under the divisional structure, each division is responsible for its own profit and loss. In this way, the performance of each division of the organisation can be clearly evaluated, and so, necessary actions can be taken.
Solution 2
The divisional structure offers the following advantages:
- Executive development: Division leaders acquire expertise in every aspect of a certain product. They are better prepared for senior management roles by developing a variety of talents.
- Accountability: Because expenses and resources are easily defined and allocated to divisions, performance can be measured and accountability can be established.
- Flexibility: Every section operates independently. This encourages initiative, adaptability, and prompt decision-making.
- Expansion and growth: New divisions can be added as the business expands without affecting ongoing operations. Therefore, divisional organisation promotes growth and expansion.
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