Which of the following is an advantage of the multidivisional structure?
A) Development time is fast due to decentralization.
B) Functional specialists from each division can easily share information with each other.
C) Bureaucratic costs are low.
D) An internal labor market is created.

Question

Quizplus · Accepted Answer

The multidivisional structure creates an internal labor market where employees can be transferred or promoted across different divisions, providing opportunities for career advancement and job security. This can lead to increased employee motivation and retention. However, the other options are not advantages of the multidivisional structure. Decentralization may increase development time but may also lead to coordination problems. Information sharing may be difficult between different divisions, and bureaucratic costs may increase due to the need for more management layers to oversee each division.

Which of the Following Is an Advantage of the Multidivisional