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Which of the following is a disadvantage of divisional structure? -

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Question

Which of the following is a disadvantage of divisional structure?

Options

  • Conflict may arise among different divisions with reference to allocation of funds.

  • More emphasis on departmental objectives.

  • Leads to inter-departmental conflict.

  • Leads to inflexibility.

MCQ

Solution

Conflict may arise among different divisions with reference to allocation of funds.

Explanation -

Different divisions may have disagreements on budget allocations, and a specific division may strive to maximise its profit at the expense of other divisions.

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