Several years ago, Russ started his own heating and cooling business. As his business grew, Russ noticed that his traditional structure was becoming difficult to coordinate, making communication difficult and decision making slow. He decided to restructure his business, organizing his departments into six larger groups: (1) heating repairs, (2) heating sales, (3) heating installation, (4) air conditioning repairs, (5) air conditioning sales, and (6) air conditioning installation. What type of structure has Russ adopted?
A) matrix
B) line-and-staff
C) line
D) multidivisional
E) multifaceted

Question

Quizplus · Accepted Answer

Russ has adopted a multidivisional structure, which organizes departments into larger groups called divisions. As companies grow and diversify, traditional line structures become difficult to coordinate, making communication difficult and decision making slow. When the weaknesses of the structure exceed the benefits, growing firms tend to restructure into the divisionalized form.

Several Years Ago, Russ Started His Own Heating and Cooling