What is the goal behind the creation of a divisional structure in an organization?
A) To create smaller, more manageable units within the organization
B) To merge all the departments that the organization requires to produce its goods or services
C) To permanently assign employees to cross-functional teams
D) To group people and resources by function and product simultaneously
E) To do away with dual reporting relationships and two-boss employees

Question

Quizplus · Accepted Answer

The goal behind the creation of a divisional structure in an organization is to create smaller, more manageable units within the organization. This allows for greater efficiency and accountability within each division, as well as the ability to respond more quickly to changes in the market or industry.

Option B is incorrect because a divisional structure does not involve merging all departments, but rather dividing the organization into separate units. Option C is incorrect because cross-functional teams are a separate concept that can exist within any structure. Option D is incorrect because it suggests grouping people and resources by both function and product, which may not be the case in a divisional structure. Option E is incorrect because dual reporting relationships and two-boss employees may still exist within a divisional structure.

What Is the Goal Behind the Creation of a Divisional