Organisational StructuresWhich of the following statements about the divisional structure are true? (Note: More than one options may be correct.)The divisional structure organizes the activities of a business around geography, product and service groupsEach division in the structure has its own set of functions which means each division will handle its own sales and marketing, accounts, production etc that support the division within a geographyIt is used commonly because it is low-cost and involves less operationsThe failure of one division may not directly threaten or impact the other division
Question
Organisational StructuresWhich of the following statements about the divisional structure are true? (Note: More than one options may be correct.)The divisional structure organizes the activities of a business around geography, product and service groupsEach division in the structure has its own set of functions which means each division will handle its own sales and marketing, accounts, production etc that support the division within a geographyIt is used commonly because it is low-cost and involves less operationsThe failure of one division may not directly threaten or impact the other division
Solution
The following statements about the divisional structure are true:
-
The divisional structure organizes the activities of a business around geography, product and service groups. This is true because in a divisional structure, each division operates as a separate business or profit center. The division is responsible for its own product line, its own marketing and sales, and its own profit and loss.
-
Each division in the structure has its own set of functions which means each division will handle its own sales and marketing, accounts, production etc that support the division within a geography. This is also true. In a divisional structure, each division is self-contained and has all the necessary resources and functions within it to support its operations.
-
It is used commonly because it is low-cost and involves less operations. This statement is not necessarily true. While a divisional structure can lead to efficiencies and synergies within each division, it can also lead to duplication of resources and functions across divisions, which can increase costs. Also, managing a divisional structure can be complex and involve more operations, not less.
-
The failure of one division may not directly threaten or impact the other division. This is generally true. In a divisional structure, each division operates independently of the others. Therefore, if one division fails, it does not necessarily mean that the other divisions will be affected. However, if the failing division is a significant part of the overall business, it could potentially have an impact on the overall company.
Similar Questions
This organizational structure takes into account the multiple dimensions involved in doing business internationally–functional areas, product, and region/country.Group of answer choicesWorldwide regional division structureRegional or worldwide product division structureNone of theseHolacracy structure
In this organizational structure, subsidiaries report to the product division with responsibility for the particular products.Group of answer choicesRegional or worldwide product division structureMatrix structureWorldwide regional division structureInternational division structure
Employees in the divisional structure are Organized around output or geographical locations Grouped based on expertise and skills Organized based on hierarchy and authority Grouped based on the type of product or service
With this organizational structure, the organization chart becomes circular and people take on more than one role, moving in teams or circles, without any thought to the organizational hierarchy.Group of answer choicesMatrix structureRegional or worldwide product division structureWorldwide regional division structureHolacracy structure
Organisational StructuresMatch the following organisational structures to their characteristicStructure Characteristic(1) Functional a. Reporting to multiple managers(2) Divisional b. A company has multiple marketing departments, each assigned to a specific division(3) Matrix c. Organisations spread across the geography come together to create the final product(4) Team-based d. Driven by employees revolving around a particular function(5) Network e. One reporting but multiple roles to play at the same time 1-d, 2-b, 3-a, 4-e, 5-c1-e, 2-c, 3-a, 4-b, 5-d1-e, 2-a, 3-c, 4-b, 5-d1-e, 2-b, 3-a, 4-c, 5-d
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.