Which one of the following best describes a divisional structure?
A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources.
B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
D) Employees have two or more superiors, a project manager and a functional manager.
E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

Question

Quizplus · Accepted Answer

A divisional structure is organized into separate divisions based on product lines, geographic regions, or customer groups. Each division functions as a self-contained unit with its own set of resources, including functional specialists such as marketing, finance, and human resources. This makes it most suitable for large corporations with multiple product lines in related industries, where divisional managers work to gain synergy among their activities.

Which One of the Following Best Describes a Divisional Structure