Asked by Ryane Smalley on May 17, 2024
Verified
A divisionalized structure works best where the organization:
A) has few employees.
B) operates in one market with one product and one client group.
C) wants to assign the most power to executives responsible for technical expertise in the organization.
D) is expanding into several distinct product and/or client groups.
E) wants to maintain a strong centralized control over business activities.
Divisionalized Structure
An organizational framework where operations are segregated based on products, markets, or geographies, allowing for specialization and focus.
Product and Client Groups
Refers to organizational divisions structured around specific products or customer segments, focusing strategies and activities on specialized markets or product lines.
Centralized Control
A management structure where decision-making authority is concentrated at the top levels of the organization.
- Gain an understanding of the fundamental qualities and functions of principal organizational configurations including functional, divisional, matrix, team-oriented, and network models.
- Investigate the influence of organizational development and market dynamics on the adaptation of structures.
Verified Answer
DN
Dharshini NelamaganMay 18, 2024
Final Answer :
D
Explanation :
A divisionalized structure is best suited for organizations that are expanding into several distinct product and/or client groups. This allows for each division to focus on their specific market and tailor their strategies accordingly, leading to greater efficiency and effectiveness. The other options (few employees, one market/product/client group, assigning power to technical executives, maintaining strong centralized control) are better suited for other organizational structures.
Learning Objectives
- Gain an understanding of the fundamental qualities and functions of principal organizational configurations including functional, divisional, matrix, team-oriented, and network models.
- Investigate the influence of organizational development and market dynamics on the adaptation of structures.