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In which of the following situation, divisional structure is not appropriate?
A. Where large variety of products are manufactured using different productive resources.
B. When an organisation grows and needs to add, more employees, create more departments.
C. When the organisation is offering only one product.
D. When operations in the organisation require high degree of specialisation.
E. When new levels are created in the management hierarchy.
Choose the correct answer from the options given below:
  • a)
    C and D only
  • b)
    A and B only
  • c)
    A and C only
  • d)
    D and E only
Correct answer is option 'A'. Can you explain this answer?
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In which of the following situation, divisional structure is not appro...
Divisional structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources. When an organisation grows and needs to add more employees, create more
departments and introduce new levels of management.
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In which of the following situation, divisional structure is not appro...

Introduction:
The divisional structure is a type of organizational structure where different divisions or units are created based on the products, services, or geographical locations of an organization. Each division operates as a separate entity with its own functional departments. However, there are certain situations where the divisional structure may not be appropriate. Let's explore these situations in detail.

A. Large variety of products manufactured using different productive resources:
In this situation, the divisional structure may not be appropriate. The divisional structure is designed to group similar products or services together within a division. If an organization manufactures a large variety of products that require different productive resources, it may be difficult to effectively manage and coordinate these diverse operations within separate divisions. It could result in duplication of resources and inefficiencies.

B. Organization growth and need to add more employees and departments:
The divisional structure is typically suitable for organizations that are large and complex. As an organization grows and needs to add more employees and departments, it may become difficult to manage and coordinate these additional units within separate divisions. The divisional structure may become too fragmented, leading to coordination challenges and a lack of unified direction.

C. Offering only one product:
In this situation, the divisional structure may not be appropriate. The divisional structure is designed to manage multiple products or services within separate divisions. If an organization offers only one product, there may not be a need to create separate divisions, as it can be effectively managed within a functional or matrix structure.

D. Operations requiring a high degree of specialization:
The divisional structure is generally suitable for organizations that have a moderate level of specialization. If operations in the organization require a high degree of specialization, it may be more efficient to centralize these specialized functions within a functional or matrix structure rather than creating separate divisions.

E. Creation of new levels in the management hierarchy:
The divisional structure typically involves multiple levels of management within each division. If an organization wants to create new levels in the management hierarchy, it may result in an overly complex organizational structure that can lead to communication and decision-making challenges.

Conclusion:
In summary, the divisional structure may not be appropriate in situations where there is a large variety of products manufactured using different productive resources, the organization offers only one product, operations require a high degree of specialization, or new levels are created in the management hierarchy. It is important for organizations to carefully consider their specific needs and circumstances when determining the most appropriate organizational structure.
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In which of the following situation, divisional structure is not appropriate?A. Where large variety of products are manufactured using different productive resources.B. When an organisation grows and needs to add, more employees, create more departments.C. When the organisation is offering only one product.D. When operations in the organisation require high degree of specialisation.E. When new levels are created in the management hierarchy.Choose the correct answer from the options given below:a)C and D onlyb)A and B onlyc)A and C onlyd)D and E onlyCorrect answer is option 'A'. Can you explain this answer?
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