Each organizational structure comes with different advantages and disadvantages and may only work for companies or organizations in certain situations or at certain points in their life cycles. Advantages and Disadvantages of Functional Organizational Structure In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. Divisional Structure 2. In divisional structure, the functions for each division are not centralized and they are capable of doing their own tasks. The structures may promote allegiance to department rather than organization objectives. The divisional structure can be useful because it affords the company greater operational flexibility. C) there can be … 2. Generally speaking, divisions work best for companies with wide variance in product offerings or regions of geographic operation. 4. Group action may lead to compromise and indecision. There’s the more traditional functional structure, the divisional structure, the matrix structure and the flatarchy structure. All of the following are disadvantages of a divisional type of organizational structure except A) it can be very expensive compared to a functional organizational structure. A) It can be very expensive compared to a functional organizational structure. Divisional Organisational Structure: In this type of structure, the organisation can have different basis on which departments are formed. For example, while Gap Inc. is the company, there are three. ‘Buck passing’ may result. If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training . Therefore, one of the disadvantages of the divisional structure is the high demand for the qualified managerial personnel (Henry, 2007). Advantages & disadvantages of divisional organizational structure Chris Joseph - Updated February 06, 2018 Large companies that serve a varied customer base or operate in a number of geographic regions may choose to operate with a divisional structure. Related. It should also be noted that a number of experts, studying different types of organizational structures, tend to treat the divisional structure as a kind of traditional bureaucratic structures (Henry, 2007). B) There is a strong tendency for divisions to focus on short-term performance. Divisional structure offers many advantages over functioned structure especially in terms of autonomy for efficient management, management development, increasing organizational size up to any limit, and taking into account of specific problems related with each product or territory contributing to the overall objectives of the firm. Committees may delay decisions, consume more time and hence more expensive. They are: (i) Function, B) there is a strong tendency for divisions to focus on short-term performance. Show More. Advantages, Disadvantages, and Contingencies of Divisional Structures Advantages Disadvantages of the divisional approach are: - 1. C) There can … 3. More advantages and disadvantages of divisional structures, as well as its contingencies, are cited below. As with all organizational structure types, the divisional structure offers distinct advantages and disadvantages. Advantages And Disadvantages Of Organizational Structure 1447 Words | 6 Pages. Divisional Structure Divisional structure is usually followed by big companies which manufacture more than one products or having operations in wide geographical area. Disadvantages: 1. This can improve the management’s decision-making process. Each division is accountable in isolation under this organizational structure. They may also place multiple demands on people, thereby creating stress. 44. 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