Which of the following is a disadvantage of the divisional structure?
A) Lack of technical specialization due to the small size of departments within each division
B) Loss of efficiency and economies of scale
C) Duplication of resources
D) High cost of running separate divisions
E) All of these

Question

Quizplus · Accepted Answer

All the options listed are disadvantages of a divisional structure. The small size of departments within each division can lead to a lack of technical specialization, which impacts the efficiency of the organization. Splitting the organization into divisions may lead to a duplication of resources or products, which can increase the cost structure. The cost of running separate divisions can be high, which impacts the organization's bottom line. All these factors combined can result in a loss of efficiency and economies of scale, making the divisional structure disadvantageous.

Which of the Following Is a Disadvantage of the Divisional