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Divisional structure is a type of departmentation in which positions are grouped.

Divisional structure is a type of departmentation in which positions are grouped.

Divisional structure is a type of departmentation in which positions are grouped according to similarity of products, services or markets. Which of the following is not an advantage of Divisional Structure?

(a)   Each unit or division can respond or react quickly, when required, because they normally do not need to coordinate with other divisions before taking an action

(b)   Coordination is simplified as each division is similar to an organization, containing the various functions within it

(c)   Individuals are able to develop in-depth areas of specialization to the same extent as in a functional structure

(d)   It helps the organization to focus on serving a particular customer

(e)   It helps to fix responsibility and accountability for performance.

Johnson 21-Dec-2017

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