Asked by Hoala Chock on May 05, 2024

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Which of the following is true of a divisional structure?

A) It is common in organizations dealing with only one or a few products or services.
B) It tends to work best in relatively stable environments where problems are predictable.
C) Its main focus is to put together people within the same expertise and help them work together.
D) It is an attempt to gain the advantages and minimize the disadvantages of the matrix structure.
E) It overcomes the disadvantages of a functional structure, such as the functional chimneys problem.

Divisional Structure

An organizational structure where the company is divided into semi-autonomous units or divisions, each responsible for certain products or services.

Functional Chimneys Problem

A term describing the lack of communication and collaboration between different departments in an organization, leading to inefficiency and conflict.

Matrix Structure

An organizational design that combines functional and project-based departments, allowing for flexibility and more dynamic team compositions.

  • Understand the positive and negative aspects of diverse organizational structures, encompassing functional and divisional types.
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HM
Hunter MiggelbrinkMay 10, 2024
Final Answer :
E
Explanation :
Divisional structures are often adopted to overcome the limitations of functional structures, such as the functional chimneys problem, where communication and coordination across different functions are poor. This structure organizes the company around divisions, each of which operates almost like a separate business, allowing for greater focus and flexibility in responding to changes in the market or customer needs.