Which of the following statements is true regarding a divisional structure?
A) The goal behind the change to a divisional structure from a functional structure is to create larger subunits within an organization.
B) As compared to functional structure, divisional structure has lower levels of vertical differentiation.
C) A divisional structure employs more complex integrating mechanisms than a functional structure.
D) As compared to functional structure, divisional structure has lower levels of horizontal differentiation.

Question

Quizplus · Accepted Answer

A divisional structure often requires more complex integrating mechanisms than a functional structure because it involves multiple, semi-autonomous units (divisions) that need coordination across different product lines, markets, or geographic areas. This complexity arises from the need to integrate activities across diverse divisions to achieve organizational goals.

Which of the Following Statements Is True Regarding a Divisional