Group action may lead to compromise and indecision. Disadvantages: 1. Disadvantages of the divisional approach are: - 1. A) It can be very expensive compared to a functional organizational structure. 44. Advantages and Disadvantages of Functional Organizational Structure In this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise. They are: (i) Function, The structures may promote allegiance to department rather than organization objectives. Show More. 2. Advantages And Disadvantages Of Organizational Structure 1447 Words | 6 Pages. C) There can … Divisional Structure Divisional structure is usually followed by big companies which manufacture more than one products or having operations in wide geographical area. Committees may delay decisions, consume more time and hence more expensive. As with all organizational structure types, the divisional structure offers distinct advantages and disadvantages. This can improve the management’s decision-making process. More advantages and disadvantages of divisional structures, as well as its contingencies, are cited below. Related. 3. ‘Buck passing’ may result. In divisional structure, the functions for each division are not centralized and they are capable of doing their own tasks. Divisional Structure 2. Divisional structure offers many advantages over functioned structure especially in terms of autonomy for efficient management, management development, increasing organizational size up to any limit, and taking into account of specific problems related with each product or territory contributing to the overall objectives of the firm. Divisional Organisational Structure: In this type of structure, the organisation can have different basis on which departments are formed. In this article, we are going to review the advantages and disadvantages of each organizational structure: Functional, Projectized, and Matrix. Generally speaking, divisions work best for companies with wide variance in product offerings or regions of geographic operation. If you want to learn more about organizational structure types in Project Management you should check out our 100% Online and Self-Paced Project Management Professional Certification Training . There’s the more traditional functional structure, the divisional structure, the matrix structure and the flatarchy structure. For example, while Gap Inc. is the company, there are three. B) there is a strong tendency for divisions to focus on short-term performance. Advantages & disadvantages of divisional organizational structure Chris Joseph - Updated February 06, 2018 Large companies that serve a varied customer base or operate in a number of geographic regions may choose to operate with a divisional structure. Advantages, Disadvantages, and Contingencies of Divisional Structures Advantages All of the following are disadvantages of a divisional type of organizational structure except A) it can be very expensive compared to a functional organizational structure. 4. Which of the following is not a disadvantage of a divisional type of organizational structure? C) there can be … Therefore, one of the disadvantages of the divisional structure is the high demand for the qualified managerial personnel (Henry, 2007). Each division is accountable in isolation under this organizational structure. It should also be noted that a number of experts, studying different types of organizational structures, tend to treat the divisional structure as a kind of traditional bureaucratic structures (Henry, 2007). Each organizational structure comes with different advantages and disadvantages and may only work for companies or organizations in certain situations or at certain points in their life cycles. 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