When a company moves from a functional structure to a divisional structure, it generally:
A)increases vertical differentiation and increases horizontal differentiation.
B)does not change differentiation but increases integration.
C)increases vertical differentiation and decreases horizontal differentiation.
D)increases horizontal differentiation and reduces vertical differentiation.

Question

Quizplus · Accepted Answer

When a company moves from a functional structure to a divisional structure, it typically increases both vertical differentiation (more levels of management) and horizontal differentiation (more specialized divisions).

When a Company Moves from a Functional Structure to a Divisional