In the context of organizational structures, identify a difference between a divisional structure and a network structure.
A) Division of labor in a divisional structure is based on outputs, whereas division of labor in a network structure is based on knowledge.
B) Coordination in a divisional structure is hierarchical, whereas coordination in a network structure is in the form of dual reporting.
C) The basic of authority in a divisional structure is functional expertise, whereas the basic of authority in a network structure is negotiation.
D) The importance of informal structure is low in a divisional structure, whereas the importance of informal structure is modest in a network structure.

Question

Quizplus · Accepted Answer

Division of labor in a divisional structure is indeed based on outputs (such as product lines or geographical markets), while in a network structure, it is more fluid and often based on knowledge and expertise, allowing for more flexibility and adaptability.

In the Context of Organizational Structures, Identify a Difference Between