More-complex environments, markets, and technologies strained mechanistic organizational structures. E.g. Culture. A divisional structure is a common organizational form used in business. Features of an organization are based on factors including size, geography, function, product and values. There’s the more traditional functional structure, the divisional structure, the matrix structure and the flatarchy structure. In this lesson, you'll learn about divisional structures, including their advantages and disadvantages. There are many types of organizational structures. Divisional structure Also called a "product structure", the divisional structure groups each organizational function into a division. Each division has its own set of functional units like research, manufacturing, marketing etc … The second era started in the 1980s and extended through the mid-1990s. Instead of focusing on specialties, this structure groups individuals based on the products or projects they are undertaking. One of key features of this structure is decentralisation of powers and responsibilities. Divisional Organizational Structure. You can use this structure to create a culture at the divisional level that most closely meets the needs of the local market. A structure is then developed to establish how the organization operates to execute its goals. The divisional structure is a type of organizational structure that groups each organizational function into a division. As will be explained, the functional structure evolved first, followed by the divisional structure and then the matrix structured. Whereas those organizations that have a diversified product line is likely to have a decentralized divisional structure. A functional structure c. A divisional structure d. A team-based structure e. A virtual network structure. a. Each division within a divisional structure contains all the necessary resources and functions within it[09]. It is also referred to us the ‘bureaucratic organization structure’ and it divides the company on the basis of specialty. These divisions can correspond to either products or geographies. Divisions can be categorized from different points of … Product Divisional Structure. Divisional structure design. Divisions are relatively independent and autonomous and in some cases may even have legal personality (profit centres or cost centres). Divisionalization usually goes hand in hand with the grouping and extracting from the internal organization the largely independent units.. These characteristics are consistent with which of the following structures? This type of organizational structure is entirely based on each person’s job duties and responsibilities. 2) Functional Structure. C. All functions in a specific country or region report to the same division manager in _____ divisions. 2.2. Product-Based Structure With product-based structure, the organization is structured around particular product lines. General Electric is an excellent example of how this style can work. under this structure, different divisions are assigned to marketing, sales or even accounting. In a divisional structure, the teams are organized in set of divisions, where each division corresponds to the end product or services provided by the organization. New structures are emerging, including halocratic and flatarchy. A matrix structure b. The divisional structure works well in markets where there is a great deal of competition, where local managers can quickly shift the direction of their businesses to respond to changes in local conditions. Examples of common organizational structures include traditional hierarchy, departmental, divisional, flat and matrix. 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