Which of the following is a disadvantage of a divisional structure?
A) It is not suited to competitive situations where coordinated action is needed for innovation.
B) This structure does not allow for much accountability.
C) It is not suited to business environments marked by high degrees of uncertainty.
D) Several core functions are duplicated, preventing the development of economies of scale for those functions.

Question

Quizplus · Accepted Answer

Divisional structures often involve duplication of functions such as marketing, human resources, and finance in each division, which can prevent the organization from achieving economies of scale in those areas. This is because each division operates semi-autonomously, leading to potential inefficiencies and increased costs compared to a more centralized structure where such functions are shared across divisions.

Which of the Following Is a Disadvantage of a Divisional