Which of the following is not a disadvantage of a divisional type of organizational structure?
A) It can be very expensive compared to a functional organizational structure.
B) There is a strong tendency for divisions to focus on short-term performance.
C) There can be dysfunctional competition among divisions.
D) There is separation of strategic and operating control.

Question

Quizplus · Accepted Answer

A divisional structure can be very expensive; there can be increased costs due to the duplication of personnel, operations, and investment since each division must staff multiple functional departments. There also can be dysfunctional competition among divisions since each division tends to become concerned solely about its own operations. Since each division is evaluated in terms of financial measures such as return on investment and revenue growth, there is often an urge to focus on short-term performance.

Which of the Following Is Not a Disadvantage of a Divisional