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Advantages & Disadvantages of Divisional Organizational Structure
Chris Joseph is a freelance writer residing in Pennsylvania. He has written hundreds of articles for newspapers and the Internet on a variety of topics, including several on golf for He holds a Bachelor of Science degree in marketing from York College of Pennsylvania. By Chris Joseph, eHow Contributor updated: January 18, 2011
Large companies that serve a varied customer base or operate in a number of geographic regions may choose to operate with a divisional structure. This is a more decentralized type of operation where each division functions much like its own separate company. This type of operation format offers certain benefits as well as potential pitfalls.
1. Self-sufficiency o An advantage of a divisional structure is that each division can operate as a separate, self-sufficient unit without having to rely heavily on the parent company or top management of the organization. Divisions typically have their own separate management structure that allows them to make decisions quickly, often without the need for approval from others. Divisions have their own equipment, supplies and resources, which allow for a more autonomous method of operation.
o Another advantage of a divisional structure is that it allows for a high degree of specialization. Workers with similar talents and abilities can work together and focus on specific projects that help the division meet its objectives. Because the division operates autonomously, management is more likely to be familiar with the needs of the workers, which ensures they will have access to the resources they need to complete their tasks. Like-minded individuals may also find it easier to develop a sense of teamwork.
Too Much Autonomy o On the other hand, a divisional structure may result in too great of a sense of…...

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