BMF – Mar July 2020 – L1 – SA – Q5 – Business and Organizational Structures and Choices

Identifying a non-advantage of divisional organizational structure

Question

The following are advantages of divisional organisational structure, EXCEPT that
A. Decision-making is usually quicker
B. Managers and employees with specialist knowledge and skills are developed
C. It avoids the risk of duplicating functions
D. Senior management are able to control a diverse and complex organisation
E. Organisation is capable of responding to new opportunities and new threats in the environment

Answer

C. It avoids the risk of duplicating functions

Explanation:
Divisional organizational structures often lead to the duplication of functions, such as multiple marketing or HR departments across different divisions. This is not considered an advantage, as it can result in inefficiencies and increased costs.

Tags: Divisional Structure, Management, Organizational Structure
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: MAR/JULY 2020

Uploader: Theophilus