The primary difference between divisional and functional structures is that the divisional structure:
A) encourages decentralization.
B) has a higher degree of work specialization.
C) has a more pronounced division of labor.
D) has better coordination across departments.
E) results in an efficient use of resources.

Question

Quizplus · Accepted Answer

The divisional structure encourages decentralization by giving each division or business unit more autonomy over its operations. In contrast, the functional structure centralizes decision-making authority within functional departments. Therefore, A is the correct answer. B, C, D, and E are not accurate statements about the difference between the two structures.

The Primary Difference Between Divisional and Functional Structures Is That