Divisional structure: Under the divisional structure an organization is divided into different divisions or units on the basis of products or geographical area.
Suitability:it is suitable for those organisation which are concerned with the manufacturing of large variety of goods.
Disadvantages of a divisional structure are:
1.There is a duplication of physical facilities and functions.
2.It suffers from the under-utilization of plant capacity.
3.Conflict may arise between different divisions on an allocation of funds and other resources.
Advantages of a divisional structure are:
1.Decisions are taken much faster in divisional structure.
2.It facilitates expansion and growth as new divisions can be added without interrupting the existing operations.
3.It leads to specialization of physical facilities and human talent.
