What is a disadvantage of a divisional organizational structure?

What is a disadvantage of a divisional organizational structure?

• A. Leads to increased innovation
• B. Can cause infighting among units
• C. Encourages collaboration across products
• D. Fosters a single product focus

Answer: (B)

A divisional organizational structure is designed to manage operations by dividing responsibilities along product lines, geographical regions, or markets. One of the notable disadvantages of this structure is that it can lead to infighting among units. This occurs because each division operates somewhat autonomously, often competing for resources, recognition, and support from upper management. The drive for individual divisions to succeed can foster a competitive rather than collaborative atmosphere, which may hinder overall organizational coherence and teamwork. This competitive spirit can result in divisions prioritizing their specific goals over collective organizational objectives, leading to siloed efforts that may duplicate functions or cause inefficiencies. Ultimately, while divisions may excel in their niches, the lack of coordination can detract from broader organizational goals and strategies. This clearly highlights why the potential for conflict among divisions is seen as a significant drawback of the divisional structure.

A divisional organizational structure is designed to manage operations by dividing responsibilities along product lines, geographical regions, or markets. One of the notable disadvantages of this structure is that it can lead to infighting among units. This occurs because each division operates somewhat autonomously, often competing for resources, recognition, and support from upper management. The drive for individual divisions to succeed can foster a competitive rather than collaborative atmosphere, which may hinder overall organizational coherence and teamwork.

This competitive spirit can result in divisions prioritizing their specific goals over collective organizational objectives, leading to siloed efforts that may duplicate functions or cause inefficiencies. Ultimately, while divisions may excel in their niches, the lack of coordination can detract from broader organizational goals and strategies. This clearly highlights why the potential for conflict among divisions is seen as a significant drawback of the divisional structure.