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What is Meant by Divisional Structure of an Organisation? - CBSE (Commerce) Class 12 - Business Studies

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Questions

What is meant by the divisional structure of an organisation?

Give the meaning of 'divisional structure' of organising

Give the meaning of 'Divisional Structure of an organisation' with the help of a diagram

Explain the concept of 'Divisional Structure'.

Solution 1

Divisional structure refers to an organisational structure wherein various diversified business activities of an organisation are grouped in different divisions. Each division is headed by a divisional manager who is responsible for the performance of that division. Further, under each division, multiple functions are performed such as production, sales and marketing. In other words, under each division, there is a functional structure.

This can be depicted with the help of an example. Suppose an organisation deals in the manufacturing of four products, namely footwear, garments, jewellery and leather accessories. Accordingly, there are four divisions, each of which reports to the Managing Director. Further, under each division, there are four departments—production, sales, marketing and advertising.

Solution 2

A divisional structure is one wherein various diversified business activities (product lines) of an organisation are grouped into different divisions. Each division is headed by a divisional manager who is responsible for the performance of that division

Solution 3

Divisional structure refers to an organisational structure wherein various diversified business activities of an organisation are grouped in different divisions. Each division is headed by a divisional manager who is responsible for the performance of that division. Further, under each division, multiple functions are performed such as production, sales and marketing. In other words, under each division, there is a functional structure.

The following diagram depicts the divisional structure of the organisation.

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Solution What is Meant by Divisional Structure of an Organisation? Concept: Structure of Organisation.
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