Divisionalization usually goes hand in hand with the grouping and extracting from the internal organization the largely independent units.. As will be explained, the functional structure evolved first, followed by the divisional structure and then the matrix structured. The divisional structure is a type of organizational structure that groups each organizational function into a division. Examples of common organizational structures include traditional hierarchy, departmental, divisional, flat and matrix. E.g. The divisional structure works well in markets where there is a great deal of competition, where local managers can quickly shift the direction of their businesses to respond to changes in local conditions. In a divisional structure, the teams are organized in set of divisions, where each division corresponds to the end product or services provided by the organization. These divisions can correspond to either products or geographies. Divisional structure design. A functional structure c. A divisional structure d. A team-based structure e. A virtual network structure. These characteristics are consistent with which of the following structures? Whereas those organizations that have a diversified product line is likely to have a decentralized divisional structure. Each division has its own set of functional units like research, manufacturing, marketing etc … Each division within a divisional structure contains all the necessary resources and functions within it[09]. Product Divisional Structure. Features of an organization are based on factors including size, geography, function, product and values. Divisions are relatively independent and autonomous and in some cases may even have legal personality (profit centres or cost centres). A structure is then developed to establish how the organization operates to execute its goals. It is also referred to us the ‘bureaucratic organization structure’ and it divides the company on the basis of specialty. New structures are emerging, including halocratic and flatarchy. A matrix structure b. C. All functions in a specific country or region report to the same division manager in _____ divisions. One of key features of this structure is decentralisation of powers and responsibilities. The second era started in the 1980s and extended through the mid-1990s. The geographic structure features characteristics of the functional structure, as each geographic division typically will arrange its people and resources in functional teams. 2.2. General Electric is an excellent example of how this style can work. a. Culture. Product-Based Structure With product-based structure, the organization is structured around particular product lines. under this structure, different divisions are assigned to marketing, sales or even accounting. There’s the more traditional functional structure, the divisional structure, the matrix structure and the flatarchy structure. You can use this structure to create a culture at the divisional level that most closely meets the needs of the local market. 2) Functional Structure. Divisions can be categorized from different points of … Instead of focusing on specialties, this structure groups individuals based on the products or projects they are undertaking. There are many types of organizational structures. Divisional structure Also called a "product structure", the divisional structure groups each organizational function into a division. Divisional Organizational Structure. In this lesson, you'll learn about divisional structures, including their advantages and disadvantages. More-complex environments, markets, and technologies strained mechanistic organizational structures. A divisional structure is a common organizational form used in business. This type of organizational structure is entirely based on each person’s job duties and responsibilities. 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