Advantages and disadvantages of divisional management structure

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mehadihasan1234
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Advantages and disadvantages of divisional management structure

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The advantages of the divisional management structure include:the ability to quickly respond to ongoing changes, both internal and external;
clear distribution of areas of responsibility;improving communication between units within a single division;
freeing senior management from issues that can be resolved at the level of lower structures;increasing the competitiveness of the company.
However, there are also certain disadvantages :

Much depends on the qualifications of the division heads – they must be experienced and energetic people who are capable of organizing the implementation of assigned tasks;
complication of the overall coordination of the enterprise's activities lista de numeros whatsapp since the heads of departments are in an equal position, and if disagreements and problems arise, the business owner or CEO will have to resolve them;
disunity within the team is possible – this especially applies to employees belonging to different departments;
greater formalism and bureaucratization.
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Increasing Profits: Secrets of a Successful Company

Principles of structuring a company by divisions
The criteria for determining the divisional structure may vary:

Product range: each division produces a separate category of goods and services.
Consumer audience: let's say, if there are different channels of distribution and interaction with clients, then the division is organized according to this principle.
Regional coverage: for each region, the company creates its own structural unit.
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