Which form of departmentalisation increases the risk of duplication and under-utilisation of resources?
A) Divisional structure
B) Functional structure
C) Simple structure
D) Matrix structure

Question

Quizplus · Accepted Answer

Divisional structure involves organising departments based on products, regions, or customer groups. This form of departmentalisation can increase the risk of duplication and under-utilisation of resources because each division may have its own support functions such as HR, finance, and IT. This duplication of resources can result in inefficiencies and increased costs. Additionally, there can be a lack of coordination between divisions, which can lead to under-utilisation of resources.

Which Form of Departmentalisation Increases the Risk of Duplication and Under-Utilisation